Arizona Quality Appraisal can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when buying a house. Since the liability for the lender is generally only the remainder between the home value and the amount due on the loan, the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and typical value changeson the chance that a purchaser defaults. The market was taking down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the added risk of the small down payment with Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower is unable to pay on the loan and the market price of the house is less than what is owed on the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be expensive to a borrower. It's profitable for the lender because they obtain the money, and they get the money if the borrower doesn't pay, unlike 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 home buyers can keep from bearing the cost of PMIThe Homeowners Protection Act of 1998 makes the lenders on most loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law guarantees that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. So, wise home owners can get off the hook ahead of time. Considering it can take countless years to reach the point where the principal is only 20% of the initial loan amount, it's crucial to know how your home has increased in value. After all, every bit of appreciation you've achieved over time counts towards abolishing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood might not be heeding the national trends and/or your home may have secured equity before things simmered down, so even when nationwide trends forecast decreasing home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Arizona Quality Appraisal, we know when property values have risen or declined. We're experts at analyzing value trends in Gilbert, Maricopa County and surrounding areas. When faced with data from an appraiser, the mortgage company will often cancel the PMI with little trouble. At which time, the homeowner can relish the savings from that point on.
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