Have equity in your home? Want a lower payment? An appraisal from Branch Appraisal Services, Inc can help you get rid of your PMI.When getting a mortgage, a 20% down payment is typically the standard. The lender's risk is usually only the remainder between the home value and the sum remaining on the loan, so the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and typical value fluctuations on the chance that a purchaser is unable to pay. During the recent mortgage upturn of the mid 2000s, it was widespread to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to endure the added risk of the small down payment with Private Mortgage Insurance or PMI. This additional policy covers the lender if a borrower defaults on the loan and the market price of the property is less than what the borrower still owes on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible. Contradictory to a piggyback loan where the lender absorbs all the losses, PMI is profitable for the lender because they secure the money, and they receive payment if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home buyers keep from bearing the cost of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically cease the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law promises that, at the request of the homeowner, the PMI must be abandoned 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 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 grown in value. After all, any appreciation you've acquired over time counts towards abolishing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home could have gained equity before things cooled off, so even when nationwide trends signify plummeting home values, you should understand that real estate is local. The difficult thing for almost all homeowners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Branch Appraisal Services, Inc, we're masters at pinpointing value trends in Indianapolis, Marion County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will most often do away with the PMI with little effort. At which time, the homeowner can relish the savings from that point on.
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