RJW Appraisal Group, LLC can help you remove your Private Mortgage InsuranceIt's largely known that a 20% down payment is accepted when getting a mortgage. The lender's risk is usually only the difference between the home value and the sum due on the loan, so the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and regular value variations on the chance that a borrower doesn't pay. The market was working with down payments down to 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender if a borrower defaults on the loan and the worth of the home is less than the loan balance. PMI is pricey to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible. Separate from a piggyback loan where the lender consumes all the losses, PMI is profitable for the lender because they collect the money, and they get paid if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can prevent paying PMIWith the implementation of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Keen home owners can get off the hook a little earlier. The law states that, at the request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent. It can take countless years to reach the point where the principal is just 20% of the initial amount of the loan, so it's necessary to know how your home has increased in value. After all, all of the appreciation you've achieved over the years counts towards abolishing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends indicate plummeting home values, be aware that real estate is local. Your neighborhood might not be heeding the national trends and/or your home could have acquired equity before things simmered down. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. As appraisers, it's our job to know the market dynamics of our area. At RJW Appraisal Group, LLC, we know when property values have risen or declined. We're masters at determining value trends in Trumbull, Fairfield County and surrounding areas. Faced with information from an appraiser, the mortgage company will most often do away with the PMI with little effort. At that time, the homeowner can enjoy the savings from that point on.
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