Have equity in your home? Want a lower payment? An appraisal from John Miller Appraisal Company can help you get rid of your PMI.When purchasing a home, a 20% down payment is typically the standard. The lender's liability is often only the remainder between the home value and the amount remaining on the loan, so the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and typical value fluctuations on the chance that a purchaser is unable to pay. During the recent mortgage upturn of the last decade, it became widespread to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to handle the added risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower doesn't pay on the loan and the value of the home is less than what is owed on the loan. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and frequently isn't even tax deductible. Unlike a piggyback loan where the lender consumes 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 buyer avoid bearing the expense of PMI?The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law states that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. So, smart homeowners can get off the hook a little early. Because it can take many years to reach the point where the principal is just 20% of the original loan amount, it's necessary to know how your home has increased in value. After all, all of the appreciation you've acquired over time counts towards removing PMI. So what's the reason for paying 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 secured equity before things simmered down, so even when nationwide trends predict plunging home values, you should understand that real estate is local. The hardest thing for most homeowners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can certainly help. It is an appraiser's job to keep up with the market dynamics of their area. At John Miller Appraisal Company, we know when property values have risen or declined. We're masters at determining value trends in Sterling Heights, Macomb County and surrounding areas. When faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little trouble. At that time, the home owner can enjoy the savings from that point on.
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