Have equity in your home? Want a lower payment? An appraisal from Barker Appraisal Group can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. Because the liability for the lender is oftentimes only the difference between the home value and the amount outstanding on the loan, the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and natural value variationson the chance that a purchaser defaults. The market was taking down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This added plan protects the lender in the event a borrower defaults on the loan and the market price of the property is less than what the borrower still owes on the loan. PMI can be expensive 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. It's profitable for the lender because they secure the money, and they get paid if the borrower doesn't pay, separate 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 homebuyers keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Keen home owners can get off the hook a little early. The law states that, upon request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. It can take many years to arrive at the point where the principal is just 20% of the original amount of the loan, so it's essential to know how your home has grown in value. After all, all of the appreciation you've acquired over time counts towards abolishing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends signify declining home values, understand that real estate is local. Your neighborhood may not be following the national trends and/or your home could have acquired equity before things simmered down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. It is an appraiser's job to keep up with the market dynamics of their area. At Barker Appraisal Group, we know when property values have risen or declined. We're experts at identifying value trends in Durham, Durham County and surrounding areas. When faced with data from an appraiser, the mortgage company will usually drop the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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