Have equity in your home? Want a lower payment? An appraisal from Livingston Appraisals, LLC can help you get rid of your PMI.When getting a mortgage, a 20% down payment is typically the standard. The lender's liability is often only the remainder between the home value and the sum due on the loan, so the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and typical value variations on the chance that a purchaser is unable to pay. Banks were accepting down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower is unable to pay on the loan and the worth of the property is lower than what the borrower still owes 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 many times isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the damages, PMI is beneficial for the lender because they secure the money, and they receive payment if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can avoid paying PMIThe Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law pledges that, at the request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent. So, keen home owners can get off the hook a little early. It can take many years to arrive at the point where the principal is only 20% of the original loan amount, so it's essential to know how your home has increased in value. After all, any appreciation you've achieved over the years counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Even when nationwide trends signify decreasing home values, realize that real estate is local. Your neighborhood may not be adopting the national trends and/or your home might have secured equity before things settled down. 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. As appraisers, it's our job to keep up with the market dynamics of our area. At Livingston Appraisals, LLC, we're experts at analyzing value trends in Lake Ozark, Camden County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will most often remove the PMI with little trouble. At that time, the homeowner can enjoy the savings from that point on.
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