Have equity in your home? Want a lower payment? An appraisal from Pinnacle Appraisals can help you get rid of your PMI.A 20% down payment is typically accepted when getting a mortgage. The lender's risk is usually only the difference between the home value and the sum due on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and natural value variations on the chance that a purchaser is unable to pay. During the recent mortgage upturn of the mid 2000s, it was widespread to see lenders commanding down payments of 10, 5 or even 0 percent. How does a lender endure the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower is unable to pay on the loan and the value of the property is less than the loan balance. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible. It's lucrative for the lender because they secure the money, and they get the money if the borrower is unable to pay, different from a piggyback loan where the lender takes in all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home buyer avoid bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Keen home owners can get off the hook a little earlier. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Since it can take countless years to arrive at the point where the principal is only 20% of the initial amount borrowed, it's essential to know how your home has appreciated in value. After all, all of the appreciation you've obtained over the years counts towards dismissing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Despite the fact that nationwide trends hint at plunging home values, realize that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home may have acquired equity before things cooled off. The hardest thing for most homeowners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Pinnacle Appraisals, we're experts at determining value trends in San Bernardino, San Bernardino County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will usually do away with the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.
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