Have equity in your home? Want a lower payment? An appraisal from Shattuck Appraisal can help you get rid of your PMI.It's largely known that a 20% down payment is the standard when buying a house. The lender's liability is usually only the remainder between the home value and the sum due on the loan, so the 20% adds a nice cushion against the charges of foreclosure, selling the home again, and typical value changes in the event a purchaser doesn't pay. During the recent mortgage upturn of the last decade, it became customary to see lenders requiring down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the additional risk of the small down payment with Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower doesn't pay on the loan and the market price of the house is less than the loan balance. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and many times isn't even tax deductible, PMI can be costly to a borrower. Separate from a piggyback loan where the lender absorbs all the losses, PMI is beneficial for the lender because they acquire 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 home owners can refrain from paying PMIThe Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Keen homeowners can get off the hook a little early. The law designates that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. It can take countless years to arrive at the point where the principal is just 20% of the initial amount borrowed, so it's crucial to know how your home has grown in value. After all, any appreciation you've gained over time counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends hint at plunging home values, realize that real estate is local. Your neighborhood might not be reflecting the national trends and/or your home may have gained equity before things simmered down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It is an appraiser's job to understand the market dynamics of their area. At Shattuck Appraisal, we know when property values have risen or declined. We're masters at pinpointing value trends in Guilderland, Albany County and surrounding areas. Faced with information from an appraiser, the mortgage company will often eliminate the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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