Burnette Appraisals can help you remove your Private Mortgage InsuranceIt's typically understood that a 20% down payment is common when buying a house. Since the risk for the lender is often only the remainder between the home value and the sum outstanding on the loan, the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and regular value fluctuationson the chance that a borrower defaults. Lenders were taking down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This added policy covers the lender if a borrower defaults on the loan and the market price of the property is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and generally isn't even tax deductible, PMI can be pricey to a borrower. It's favorable for the lender because they obtain the money, and they receive payment if the borrower doesn't pay, separate from a piggyback loan where the lender absorbs 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 home owner keep from paying PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law guarantees that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches just 80 percent. So, savvy home owners can get off the hook a little early. Considering it can take many years to reach the point where the principal is just 20% of the initial amount of the loan, it's necessary to know how your home has appreciated in value. After all, every bit of appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be reflecting the national trends and/or your home could have secured equity before things calmed down, so even when nationwide trends forecast falling home values, you should realize that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. It is an appraiser's job to understand the market dynamics of their area. At Burnette Appraisals, we know when property values have risen or declined. We're masters at recognizing value trends in Lancaster, Garrard County and surrounding areas. When faced with information from an appraiser, the mortgage company will usually remove the PMI with little trouble. At which time, the homeowner can relish the savings from that point on.
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