Have equity in your home? Want a lower payment? An appraisal from Certified Commonwealth Appraisals, LLC can help you get rid of your PMI.A 20% down payment is usually accepted when purchasing a home. The lender's risk is oftentimes only the remainder between the home value and the sum outstanding on the loan, so the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and typical value fluctuations on the chance that a purchaser doesn't pay. During the recent mortgage boom of the last decade, it was widespread to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to endure the additional risk of the low down payment with Private Mortgage Insurance or PMI. This supplemental plan protects the lender in the event a borrower is unable to pay on the loan and the worth of the house is lower than the loan balance. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and many times isn't even tax deductible. Opposite from a piggyback loan where the lender consumes all the damages, PMI is favorable for the lender because they obtain the money, and they get the money 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 homebuyers keep from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Wise home owners can get off the hook beforehand. The law states that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent. It can take countless years to get to the point where the principal is just 20% of the initial amount of the loan, so it's important to know how your home has increased in value. After all, all of the appreciation you've achieved over time counts towards abolishing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home may have acquired equity before things settled down, so even when nationwide trends hint at decreasing home values, you should understand that real estate is local. The toughest thing for most home owners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can definitely help. It's an appraiser's job to know the market dynamics of their area. At Certified Commonwealth Appraisals, LLC, we're experts at pinpointing value trends in Centreville, Fairfax 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 most often remove the PMI with little trouble. At which time, the homeowner can delight in the savings from that point on.
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