Let Crystal Coast Appraisal Group LLC help you discover if you can eliminate your PMIWhen purchasing a home, a 20% down payment is usually the standard. Since the liability for the lender is generally only the remainder between the home value and the amount due on the loan, the 20% supplies a nice cushion against the costs of foreclosure, reselling the home, and regular value changeson the chance that a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it was customary to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender handle the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added plan takes care of the lender in the event a borrower defaults on the loan and the value of the home is less than what is owed on the loan. PMI can be costly to a borrower in that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and frequently isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the costs, PMI is beneficial for the lender because they collect the money, and they get paid if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law pledges that, upon request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. So, smart homeowners can get off the hook ahead of time. Considering it can take countless years to reach the point where the principal is just 20% of the original amount borrowed, it's essential to know how your home has appreciated in value. After all, any appreciation you've accomplished over time counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Your neighborhood may not be minding the national trends and/or your home could have acquired equity before things calmed down, so even when nationwide trends predict decreasing home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners 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 understand the market dynamics of our area. At Crystal Coast Appraisal Group LLC, we know when property values have risen or declined. We're experts at analyzing value trends in Swansboro, County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often eliminate the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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