Have equity in your home? Want a lower payment? An appraisal from Atlantic Appraisal Services LLC can help you get rid of your PMI.It's generally understood that a 20% down payment is the standard when purchasing a home. The lender's liability is often only the remainder between the home value and the sum due on the loan, so the 20% provides a nice buffer against the charges of foreclosure, selling the home again, and natural value fluctuations in the event a borrower doesn't pay. Banks were taking down payments as low as 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. A lender is able to handle the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This added plan guards the lender if a borrower is unable to pay on the loan and the market price of the home is lower than the loan balance. PMI can be costly to a borrower in that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and oftentimes isn't even tax deductible. It's advantageous for the lender because they acquire the money, and they receive payment if the borrower is unable to pay, contradictory to 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 buyers avoid paying PMI?The Homeowners Protection Act of 1998 makes the lenders on most loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law states that, at the request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. So, keen home owners can get off the hook a little earlier. It can take many years to reach the point where the principal is only 20% of the original amount borrowed, so it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've gained over the years counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Even when nationwide trends hint at falling home values, realize that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home could have acquired equity before things simmered down. The toughest thing for most homeowners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to recognize the market dynamics of their area. At Atlantic Appraisal Services LLC, we know when property values have risen or declined. We're masters at recognizing value trends in Florence, Florence County and surrounding areas. Faced with figures from an appraiser, the mortgage company will generally drop the PMI with little trouble. At that time, the homeowner can retain the savings from that point on.
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