Have equity in your home? Want a lower payment? An appraisal from Cheshier PAS can help you get rid of your PMI.A 20% down payment is typically accepted when purchasing a home. Because the liability for the lender is usually only the difference between the home value and the sum due on the loan, the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and natural value fluctuationson the chance that a purchaser doesn't pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to endure the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplemental plan guards the lender if a borrower doesn't pay on the loan and the market price of the house is lower than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and many times isn't even tax deductible, PMI can be expensive to a borrower. Separate from a piggyback loan where the lender consumes all the losses, PMI is beneficial for the lender because they secure the money, and they get the money if the borrower is unable to pay. 
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?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law promises that, upon request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. So, savvy homeowners can get off the hook a little earlier. It can take many years to reach the point where the principal is just 20% of the original loan amount, so it's essential to know how your home has grown in value. After all, every bit of appreciation you've acquired over the years counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends forecast declining home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home may have secured equity before things settled down. The hardest thing for many home owners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to know the market dynamics of our area. At Cheshier PAS, we know when property values have risen or declined. We're experts at recognizing value trends in Cypress , Harris County and surrounding areas. Faced with data from an appraiser, the mortgage company will usually drop the PMI with little anxiety. At that time, the home owner can retain the savings from that point on.
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