Have equity in your home? Want a lower payment? An appraisal from South Shore Realty Advisors, Inc can help you get rid of your PMI.A 20% down payment is typically accepted when purchasing a home. The lender's risk is oftentimes only the difference between the home value and the sum outstanding on the loan, so the 20% supplies a nice buffer against the charges of foreclosure, reselling the home, and natural value fluctuations in the event a borrower defaults. The market was accepting down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender manage the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This added plan takes care of the lender in the event a borrower doesn't pay on the loan and the market price of the property is less than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and generally isn't even tax deductible, PMI can be pricey to a borrower. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is profitable for the lender because they obtain 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 homeowner refrain from paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law designates that, at the request of the home owner, the PMI must be released when the principal amount equals just 80 percent. So, smart home owners can get off the hook sooner than expected. It can take many years to get to 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, any appreciation you've gained over time counts towards abolishing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? Your neighborhood may not be adopting the national trends and/or your home may have secured equity before things simmered down, so even when nationwide trends predict plummeting home values, you should realize that real estate is local. 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 tough thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At South Shore Realty Advisors, Inc, we know when property values have risen or declined. We're masters at analyzing value trends in Marshfield, Plymouth County and surrounding areas. Faced with data from an appraiser, the mortgage company will generally cancel the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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