Have equity in your home? Want a lower payment? An appraisal from Allatoona Appraisal can help you get rid of your PMI.A 20% down payment is usually accepted when buying a house. Considering the risk for the lender is generally only the remainder between the home value and the sum due on the loan, the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and regular value fluctuationson the chance that a purchaser is unable to pay. The market was working with down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to endure the additional risk of the small down payment with Private Mortgage Insurance or PMI. This additional policy takes care of the lender if a borrower doesn't pay on the loan and the worth of the property is lower than what the borrower still owes on the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and many times isn't even tax deductible, PMI can be pricey to a borrower. It's profitable for the lender because they acquire the money, and they receive payment if the borrower is unable to pay, different from 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 homebuyer refrain from paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law pledges that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. So, keen home owners can get off the hook a little early. It can take many years to reach the point where the principal is just 20% of the initial loan amount, so it's necessary to know how your home has appreciated in value. After all, every bit of appreciation you've gained over the years counts towards removing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends forecast decreasing home values, be aware that real estate is local. Your neighborhood may not be adopting the national trends and/or your home might have acquired equity before things cooled off. The toughest 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 surely help. It is an appraiser's job to know the market dynamics of their area. At Allatoona Appraisal, we know when property values have risen or declined. We're experts at identifying value trends in Acworth, Cobb County and surrounding areas. Faced with data from an appraiser, the mortgage company will often do away with the PMI with little anxiety. At that time, the homeowner can relish the savings from that point on.
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