Have equity in your home? Want a lower payment? An appraisal from Severson Appraisal Service can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. The lender's risk is often only the remainder between the home value and the amount due on the loan, so the 20% adds a nice cushion against the charges of foreclosure, selling the home again, and regular value changes in the event a purchaser is unable to pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to manage the added risk of the small down payment with Private Mortgage Insurance or PMI. This added plan takes care of the lender in case a borrower defaults 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 compiled into the mortgage payment and generally isn't even tax deductible, PMI is pricey to a borrower. It's favorable for the lender because they secure the money, and they receive payment if the borrower defaults, unlike 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 homeowners can refrain from bearing the expense of PMIThe Homeowners Protection Act of 1998 forces the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Savvy homeowners can get off the hook a little early. The law designates that, upon request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. Because it can take countless years to reach the point where the principal is just 20% of the initial loan amount, it's necessary to know how your home has grown in value. After all, all of the appreciation you've accomplished over the years counts towards removing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be following the national trends and/or your home could have secured equity before things calmed down, so even when nationwide trends predict falling home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Severson Appraisal Service, we're experts at identifying value trends in Anchorage, Anchorage County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will most often drop the PMI with little anxiety. At that time, the homeowner can delight in the savings from that point on.
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