Phoenix Valuations, LLC can help you remove your Private Mortgage InsuranceWhen buying a house, a 20% down payment is usually the standard. Since the liability for the lender is oftentimes only the remainder between the home value and the amount remaining on the loan, the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and regular value fluctuationsin the event a borrower defaults. The market was accepting down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplemental plan protects the lender in case a borrower is unable to pay on the loan and the value of the home is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and generally isn't even tax deductible, PMI can be costly to a borrower. It's advantageous for the lender because they acquire the money, and they receive payment if the borrower defaults, unlike a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers prevent bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Wise homeowners can get off the hook sooner than expected. The law designates that, upon 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 original amount borrowed, so it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've acquired over the years counts towards abolishing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Your neighborhood may not be heeding the national trends and/or your home may have secured equity before things settled down, so even when nationwide trends signify decreasing home values, you should realize that real estate is local. The hardest thing for most home owners to understand is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to understand the market dynamics of our area. At Phoenix Valuations, LLC, we know when property values have risen or declined. We're experts at identifying value trends in Scottsdale, Maricopa County and surrounding areas. When faced with data 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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