Have equity in your home? Want a lower payment? An appraisal from Brown Appraisal Services can help you get rid of your PMI.A 20% down payment is usually the standard when getting a mortgage. Since the risk for the lender is usually only the difference between the home value and the sum remaining on the loan, the 20% provides a nice cushion against the charges of foreclosure, selling the home again, and natural value variationsin the event a borrower defaults. 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 low down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in case a borrower doesn't pay on the loan and the worth of the home is less than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and frequently isn't even tax deductible, PMI is pricey to a borrower. Separate from a piggyback loan where the lender consumes all the damages, PMI is favorable for the lender because they secure the money, and they receive payment if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home owners keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law states that, at the request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. So, wise home owners can get off the hook sooner than expected. Since it can take countless years to arrive at the point where the principal is just 20% of the original amount borrowed, it's essential to know how your home has increased in value. After all, every bit of appreciation you've acquired over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Your neighborhood may not be adhering to the national trends and/or your home could have secured equity before things settled down, so even when nationwide trends forecast decreasing home values, you should realize that real estate is local. An accredited, 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. As appraisers, it's our job to know the market dynamics of our area. At Brown Appraisal Services, we're experts at pinpointing value trends in Oak Ridge, Roane 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 generally do away with the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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