Have equity in your home? Want a lower payment? An appraisal from Pollock Appraisal Group, LLC can help you get rid of your PMI.It's widely inferred that a 20% down payment is the standard when buying a house. The lender's liability is often only the remainder between the home value and the amount outstanding 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 purchaser doesn't pay. During the recent mortgage boom of the mid 2000s, it was common to see lenders requiring down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI covers the lender in case a borrower doesn't pay on the loan and the worth of the home is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and many times isn't even tax deductible, PMI is pricey to a borrower. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is profitable 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 home owner avoid bearing the expense of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law guarantees that, upon request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. So, acute home owners can get off the hook ahead of time. Since it can take many years to get to the point where the principal is only 20% of the initial amount borrowed, it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've gained over time counts towards removing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% threshold? Your neighborhood may not be following the national trends and/or your home might have acquired equity before things simmered down, so even when nationwide trends hint at plunging home values, you should understand 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 hard thing to know. It's an appraiser's job to understand the market dynamics of their area. At Pollock Appraisal Group, LLC, we know when property values have risen or declined. We're experts at determining value trends in New Orleans, Orleans County and surrounding areas. When faced with figures from an appraiser, the mortgage company will usually remove the PMI with little trouble. At that time, the homeowner can retain the savings from that point on.
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