Have equity in your home? Want a lower payment? An appraisal from Sleeping Giant Appraisals can help you get rid of your PMI.It's widely known that a 20% down payment is accepted when getting a mortgage. Because the liability for the lender is generally only the difference between the home value and the amount due on the loan, the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and regular value changesin the event a borrower defaults. During the recent mortgage boom of the last decade, it was common to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to manage the additional risk of the small down payment with Private Mortgage Insurance or PMI. This added plan guards the lender if a borrower doesn't pay on the loan and the worth of the home is less than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and often isn't even tax deductible, PMI is costly to a borrower. It's advantageous for the lender because they collect the money, and they receive payment if the borrower doesn't pay, contradictory to a piggyback loan where the lender absorbs all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can keep from bearing the cost of PMIThe Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Savvy homeowners can get off the hook a little earlier. The law designates that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. It can take many years to reach the point where the principal is just 20% of the original amount of the loan, so it's crucial to know how your home has grown in value. After all, all of the appreciation you've achieved over time 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 reflecting the national trends and/or your home might have acquired equity before things settled down, so even when nationwide trends predict plummeting home values, you should realize that real estate is local. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to know the market dynamics of our area. At Sleeping Giant Appraisals, we're masters at recognizing value trends in Lewis And Clark, Broadwater, Jefferson, and Cascade County, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will usually remove the PMI with little effort. At which time, the home owner can retain the savings from that point on.
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