Have equity in your home? Want a lower payment? An appraisal from High Country Appraisal Services can help you get rid of your PMI.It's largely understood that a 20% down payment is accepted when getting a mortgage. Because the liability for the lender is oftentimes only the remainder between the home value and the amount remaining on the loan, the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and regular value variationson the chance that a purchaser is unable to pay. Lenders were accepting 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 endure the additional risk of the low down payment with Private Mortgage Insurance or PMI. This added plan protects the lender in case a borrower doesn't pay on the loan and the value of the home is less than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and generally isn't even tax deductible, PMI is costly to a borrower. It's lucrative for the lender because they acquire the money, and they receive payment if the borrower is unable to pay, contradictory to a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a buyer prevent bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Keen homeowners can get off the hook a little earlier. The law designates that, at the request of the homeowner, the PMI must be dropped when the principal amount equals just 80 percent. It can take countless years to reach the point where the principal is only 20% of the initial amount borrowed, so it's important to know how your home has appreciated in value. After all, every bit of appreciation you've accomplished over the years counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home may have gained equity before things simmered down, so even when nationwide trends hint at declining home values, you should understand that real estate is local. The hardest thing for almost all home owners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. It is an appraiser's job to know the market dynamics of their area. At High Country Appraisal Services, we know when property values have risen or declined. We're experts at recognizing value trends in Canon City, Fremont County and surrounding areas. Faced with data from an appraiser, the mortgage company will often remove the PMI with little effort. At which time, the home owner can delight in the savings from that point on.
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