Let JGI Valuations help you determine if you can eliminate your PMIWhen getting a mortgage, a 20% down payment is usually the standard. The lender's liability is generally only the difference between the home value and the amount remaining on the loan, so the 20% adds a nice buffer against the expenses of foreclosure, reselling the home, and natural value variations in the event a borrower defaults. Lenders were working with down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. How does a lender handle the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This supplementary plan takes care of the lender in case a borrower is unable to pay on the loan and the worth of the house is less than what the borrower still owes on the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and many times isn't even tax deductible. It's lucrative for the lender because they obtain the money, and they get paid if the borrower is unable to pay, unlike a piggyback loan where the lender consumes all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homeowners can refrain from paying PMIWith the utilization 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 pledges that, upon request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. So, smart homeowners can get off the hook a little early. Considering it can take countless years to arrive at the point where the principal is just 20% of the initial amount borrowed, it's essential to know how your home has increased in value. After all, any appreciation you've gained over time counts towards dismissing PMI. So why pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be reflecting the national trends and/or your home could have gained equity before things settled down, so even when nationwide trends hint at decreasing home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. As appraisers, it's our job to know the market dynamics of our area. At Joluma Group, Inc., we're experts at recognizing value trends in Hialeah, Miami-Dade County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will usually cancel the PMI with little anxiety. At which time, the home owner can enjoy the savings from that point on.
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