CERTIFIED APPRAISALS, INC. can help you remove your Private Mortgage InsuranceA 20% down payment is usually accepted when buying a house. Considering the risk for the lender is usually only the remainder between the home value and the amount outstanding on the loan, the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and typical value variationsin the event a purchaser is unable to pay. Lenders were taking down payments as low as 10, 5 and often 0 percent during the mortgage boom of the mid 2000s. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender in case a borrower doesn't pay on the loan and the market price of the property is lower than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and many times isn't even tax deductible, PMI can be pricey to a borrower. It's beneficial for the lender because they obtain the money, and they get the money if the borrower is unable to pay, unlike a piggyback loan where the lender takes in all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homeowner refrain from paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Smart homeowners can get off the hook a little early. The law states that, at the request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. Since it can take countless years to arrive at the point where the principal is only 20% of the original loan amount, it's essential to know how your home has grown in value. After all, any appreciation you've acquired over the years counts towards dismissing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood might not be following the national trends and/or your home might have secured equity before things calmed down, so even when nationwide trends indicate decreasing home values, you should understand that real estate is local. The toughest thing for almost all home owners to understand is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. It's an appraiser's job to recognize the market dynamics of their area. At CERTIFIED APPRAISALS, INC., we're masters at determining value trends in Miami, Miami-Dade County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will most often eliminate the PMI with little anxiety. At which time, the homeowner can delight in the savings from that point on.
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