Have equity in your home? Want a lower payment? An appraisal from Carly Krieg Appraisals can help you get rid of your PMI.It's widely inferred that a 20% down payment is the standard when purchasing a home. Because the liability for the lender is usually only the difference between the home value and the amount remaining on the loan, the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and regular value fluctuationsin the event a borrower defaults. Banks were taking down payments down to 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to manage the additional risk of the small down payment with Private Mortgage Insurance or PMI. This supplemental policy covers the lender in case a borrower is unable to pay on the loan and the value of the home is less than what is owed on the loan. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and generally isn't even tax deductible, PMI can be costly to a borrower. It's profitable for the lender because they secure the money, and they receive payment if the borrower defaults, different from a piggyback loan where the lender takes in 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 refrain from paying PMIWith the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically eliminate 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 abandoned when the principal amount reaches just 80 percent. So, acute homeowners can get off the hook ahead of time. Since it can take many years to get to the point where the principal is only 20% of the initial loan amount, it's essential to know how your home has grown in value. After all, any appreciation you've gained over the years counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Your neighborhood may not be adhering to the national trends and/or your home might have secured equity before things settled down, so even when nationwide trends indicate plunging home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Carly Krieg Appraisals, we're masters at pinpointing value trends in Cape May Court House, Cape May County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will most often remove the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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