Have equity in your home? Want a lower payment? An appraisal from Spring Creek Appraisal can help you get rid of your PMI.A 20% down payment is typically accepted when getting a mortgage. The lender's liability is often only the remainder between the home value and the sum outstanding on the loan, so the 20% supplies a nice cushion against the charges of foreclosure, selling the home again, and typical value variations in the event a purchaser doesn't pay. The market was working with down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender in case a borrower is unable to pay on the loan and the market price of the property is less than the balance of the loan. PMI is costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and frequently isn't even tax deductible. Different from a piggyback loan where the lender takes in all the costs, PMI is lucrative for the lender because they obtain the money, and they get the money if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home buyers keep from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Smart home owners can get off the hook sooner than expected. The law stipulates that, upon request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. It can take many years to reach the point where the principal is only 20% of the original loan amount, so it's necessary to know how your home has increased in value. After all, any appreciation you've gained over the years counts towards abolishing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Your neighborhood might not be adopting the national trends and/or your home may have acquired equity before things calmed down, so even when nationwide trends indicate falling home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Spring Creek Appraisal, we know when property values have risen or declined. We're experts at identifying value trends in Houston, Harris County and surrounding areas. Faced with information from an appraiser, the mortgage company will often remove the PMI with little trouble. At which time, the homeowner can delight in the savings from that point on.
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