Eliminate Homeowner Private Mortgage Insurance ("PMI")

Have equity in your home?

Want a lower payment?

An appraisal from AmeriPRIDE Appraisal can help you get rid of the Private Mortgage Insurance ("PMI") expense.

When purchasing a home, a 20% down payment is common. The lender's risk is oftentimes only the difference between the home value and the sum remaining on the loan, so the 20% supplies a nice buffer against the costs of foreclosure, reselling the home, and typical value changes in the event a purchaser is unable to pay.

During the recent mortgage upturn that our country recently experienced, it was customary to see lenders reducing down payments to 10%, 5%, 3% or sometimes 0%. A lender is able to endure the added risk of the low down payment with PMI. This added plan protects the lender in the event a borrower is unable to pay on the loan and the value of the house is lower than the balance of the loan.

PMI is costly to a borrower and is lumped into the mortgage payment, and many times isn't even tax deductible. It's lucrative for the lender because they obtain the money, and they are covered if the borrower doesn't pay.

	Did you secure your mortgage with less than 20% down? Contact us today to confidentially discuss your property and see if you can get rid of your Private Mortgage Insurance payment.

How homeowners can prevent paying PMI

As a result of The Homeowners Protection Act of 1998, lenders are required to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the initial loan amount on nearly all loans. Savvy homeowners can get off the hook a little early. The law guarantees that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals just 80%.

It can take a significant number of years to get to the point where the principal is just 80% of the original amount borrowed, so it's necessary to know how your home has increased in value. After all, every bit of appreciation you've achieved over the years counts towards removing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? Even when nationwide trends signify declining home values, understand that real estate is local. Your neighborhood may not be following the national trends and/or your home might have acquired equity before things declined.

An accredited, Florida State licensed/certified real estate appraiser can help home owners figure out if their equity has made it to the 20% point. Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job! At AmeriPRIDE Appraisal, we're masters at recognizing value trends and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will often do away with the PMI with little anxiety. At that time, the home owner can delight in the savings from that point on.

	The money you keep from cancelling your PMI pays for the appraisal in no time.