Accelerated Appraisal Services LLC can help you remove your Private Mortgage InsuranceWhen getting a mortgage, a 20% down payment is usually the standard. The lender's liability is usually only the difference between the home value and the amount remaining on the loan, so the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and regular value variations in the event a borrower doesn't pay. During the recent mortgage upturn of the mid 2000s, it was common to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. This added plan protects the lender in the event a borrower doesn't pay on the loan and the market price of the house is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and generally isn't even tax deductible, PMI can be pricey to a borrower. It's favorable for the lender because they secure the money, and they get paid if the borrower defaults, unlike a piggyback loan where the lender takes in all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homebuyers can refrain from bearing the cost of PMIWith the utilization of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Keen home owners can get off the hook ahead of time. The law states that, upon request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. It can take many years to get to the point where the principal is just 20% of the original amount borrowed, so it's important to know how your home has grown 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? Even when nationwide trends forecast falling home values, be aware that real estate is local. Your neighborhood might not be minding the national trends and/or your home may have secured equity before things simmered down. 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 difficult thing to know. It is an appraiser's job to recognize the market dynamics of their area. At Accelerated Appraisal Services LLC, we know when property values have risen or declined. We're masters at determining value trends in Bend, Deschutes County and surrounding areas. Faced with data from an appraiser, the mortgage company will most often drop the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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