Marathon Appraisals, Inc can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when buying a house. The lender's liability is oftentimes only the remainder between the home value and the amount remaining on the loan, so the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and natural value variations in the event a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it was widespread to see lenders commanding down payments of 10, 5 or even 0 percent. A lender is able to manage the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This additional policy guards the lender if a borrower is unable to pay on the loan and the value of the property is less than the loan balance. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI is costly to a borrower. Different from a piggyback loan where the lender absorbs all the costs, PMI is beneficial for the lender because they secure the money, and they receive payment if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer prevent paying PMI?The Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law guarantees that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches just 80 percent. So, smart home owners can get off the hook sooner than expected. Since it can take many years to arrive at the point where the principal is just 20% of the initial amount borrowed, it's important to know how your home has grown in value. After all, any appreciation you've acquired over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Your neighborhood may not be reflecting the national trends and/or your home could have secured equity before things cooled off, so even when nationwide trends signify plummeting home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a hard thing to know. It's an appraiser's job to keep up with the market dynamics of their area. At Marathon Appraisals, Inc, we're experts at identifying value trends in Roswell, Fulton 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 usually eliminate the PMI with little anxiety. At that time, the home owner can delight in the savings from that point on.
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