Let Country Manor help you discover if you can eliminate your PMIWhen buying a house, a 20% down payment is usually the standard. The lender's liability is oftentimes only the difference between the home value and the amount outstanding on the loan, so the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and typical value fluctuations in the event a borrower is unable to pay. Banks were accepting down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the added risk of the small down payment with Private Mortgage Insurance or PMI. PMI guards the lender in case a borrower doesn't pay on the loan and the market price of the house is less than what is owed on the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI is pricey to a borrower. Unlike a piggyback loan where the lender takes in all the deficits, PMI is profitable for the lender because they collect the money, and they get the money if the borrower is unable to pay. 
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 bearing the cost of PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Wise homeowners can get off the hook sooner than expected. The law guarantees that, at the request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. It can take countless years to reach the point where the principal is only 20% of the original amount borrowed, so it's crucial to know how your home has appreciated in value. After all, all of the appreciation you've obtained over the years counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be following the national trends and/or your home might have secured equity before things settled down, so even when nationwide trends signify declining home values, you should understand that real estate is local. The difficult thing for most home owners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to recognize the market dynamics of our area. At Country Manor, we know when property values have risen or declined. We're experts at determining value trends in Medina, Medina County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often eliminate the PMI with little trouble. At which time, the home owner can retain the savings from that point on.
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