Caprock Appraisals can help you remove your Private Mortgage InsuranceIt's widely understood that a 20% down payment is the standard when purchasing a home. The lender's liability is often only the difference between the home value and the amount remaining on the loan, so the 20% provides a nice cushion against the costs of foreclosure, selling the home again, and regular value changes on the chance that a borrower is unable to pay. During the recent mortgage upturn of the mid 2000s, it became common to see lenders commanding down payments of 10, 5 or sometimes 0 percent. A lender is able to endure the added risk of the low down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower doesn't pay on the loan and the worth of the home is less than the balance of the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and often isn't even tax deductible. It's lucrative for the lender because they secure the money, and they get the money if the borrower defaults, unlike a piggyback loan where the lender absorbs all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homeowner prevent bearing the expense of PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Wise home owners can get off the hook beforehand. The law designates that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Because it can take many years to get to the point where the principal is only 20% of the original amount of the loan, it's essential to know how your home has grown in value. After all, any appreciation you've achieved over the years counts towards abolishing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Your neighborhood might not be reflecting the national trends and/or your home might have secured equity before things simmered down, so even when nationwide trends signify plunging home values, you should understand that real estate is local. The toughest thing for almost all homeowners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. It's an appraiser's job to keep up with the market dynamics of their area. At Caprock Appraisals, we know when property values have risen or declined. We're masters at pinpointing value trends in Plainview, Hale County and surrounding areas. Faced with data from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At that time, the home owner can enjoy the savings from that point on.
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