Gloria Ostrowski Appraisals, Inc. can help you remove your Private Mortgage InsuranceA 20% down payment is usually accepted when purchasing a home. The lender's liability is oftentimes only the remainder between the home value and the amount outstanding on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and regular value variations on the chance that a purchaser doesn't pay. During the recent mortgage boom of the last decade, it became widespread to see lenders taking down payments of 10, 5 or sometimes 0 percent. A lender is able to handle the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This added policy covers the lender if a borrower is unable to pay on the loan and the value of the property is less than what is owed on the loan. PMI is pricey to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and frequently isn't even tax deductible. It's lucrative for the lender because they acquire the money, and they receive payment if the borrower is unable to pay, separate from a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can keep from paying PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law designates that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, smart homeowners can get off the hook sooner than expected. It can take many years to get to the point where the principal is just 20% of the initial amount of the loan, so it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've achieved over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends forecast declining home values, understand that real estate is local. Your neighborhood might not be following the national trends and/or your home might have gained equity before things simmered down. The hardest thing for many home owners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can certainly help. As appraisers, it's our job to understand the market dynamics of our area. At Gloria Ostrowski Appraisals, Inc. , we know when property values have risen or declined. We're experts at pinpointing value trends in Bluffton, Wells County and surrounding areas. When faced with information from an appraiser, the mortgage company will generally drop the PMI with little effort. At that time, the homeowner can delight in the savings from that point on.
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