Have equity in your home? Want a lower payment? An appraisal from Central Washington Appraisal Services can help you get rid of your PMI.It's largely understood that a 20% down payment is common when getting a mortgage. The lender's risk is usually only the remainder between the home value and the amount outstanding on the loan, so the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and natural value changes on the chance that a borrower doesn't pay. Lenders were accepting down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to handle the added risk of the small down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower is unable to pay on the loan and the value of the home is lower than what is owed on the loan. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible. Different from a piggyback loan where the lender consumes all the costs, PMI is profitable for the lender because they obtain 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 a home buyer refrain from paying PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law pledges that, at the request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. So, savvy home owners can get off the hook a little early. It can take countless years to arrive at the point where the principal is just 20% of the original amount borrowed, so it's crucial to know how your home has grown in value. After all, all of the appreciation you've obtained over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Your neighborhood may not be adopting the national trends and/or your home may have acquired equity before things simmered down, so even when nationwide trends signify declining 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 rises above the 20% point, as it's a tough thing to know. It is an appraiser's job to recognize the market dynamics of their area. At Central Washington Appraisal Services, we know when property values have risen or declined. We're masters at determining value trends in Yakima, Yakima County and surrounding areas. When faced with data from an appraiser, the mortgage company will often cancel the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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