Have equity in your home? Want a lower payment? An appraisal from Giles Appraisal Group, Inc can help you get rid of your PMI.It's typically inferred that a 20% down payment is accepted when purchasing a home. Considering the liability for the lender is usually only the remainder between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and natural value changeson the chance that a borrower defaults. During the recent mortgage boom of the mid 2000s, it became customary to see lenders commanding down payments of 10, 5 or sometimes 0 percent. How does a lender handle the increased risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This supplemental policy covers the lender in the event a borrower doesn't pay on the loan and the worth of the property is lower than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and often isn't even tax deductible, PMI can be costly to a borrower. Different from a piggyback loan where the lender takes in all the damages, PMI is advantageous 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 home owners can refrain from paying PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Acute homeowners can get off the hook beforehand. The law designates that, upon request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. Since it can take many years to arrive at the point where the principal is only 20% of the original amount of the loan, it's important to know how your home has increased in value. After all, any appreciation you've obtained over the years counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be heeding the national trends and/or your home might have secured equity before things cooled off, so even when nationwide trends predict plummeting home values, you should understand that real estate is local. 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 tough thing to know. It's an appraiser's job to know the market dynamics of their area. At Giles Appraisal Group, Inc, we know when property values have risen or declined. We're masters at pinpointing value trends in Panama City, Fl, Bay County and surrounding areas. Faced with information from an appraiser, the mortgage company will generally eliminate the PMI with little effort. At which time, the home owner can relish the savings from that point on.
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