Stephens Appraisal Group, Inc. can help you remove your Private Mortgage InsuranceIt's generally known that a 20% down payment is the standard when getting a mortgage. Considering the risk for the lender is oftentimes only the difference between the home value and the sum outstanding on the loan, the 20% provides a nice cushion against the expenses of foreclosure, reselling the home, and typical value changeson the chance that a purchaser defaults. During the recent mortgage upturn of the mid 2000s, it was widespread to see lenders taking down payments of 10, 5 or often 0 percent. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower is unable to pay on the loan and the worth of the house is lower than what the borrower still owes on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and generally isn't even tax deductible. It's favorable for the lender because they secure the money, and they get paid if the borrower defaults, separate from a piggyback loan where the lender consumes 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?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law guarantees that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent. So, keen home owners can get off the hook sooner than expected. Because it can take many years to reach the point where the principal is only 20% of the original loan amount, it's crucial to know how your home has appreciated in value. After all, all of the appreciation you've achieved over the years counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be heeding the national trends and/or your home may have secured equity before things calmed down, so even when nationwide trends forecast 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 difficult thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Stephens Appraisal Group, Inc., we know when property values have risen or declined. We're experts at analyzing value trends in Little Rock, Pulaski County and surrounding areas. Faced with information from an appraiser, the mortgage company will most often drop the PMI with little effort. At which time, the home owner can relish the savings from that point on.
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