Have equity in your home? Want a lower payment? An appraisal from RWA Appraisals can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. The lender's risk is often only the remainder between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and typical value fluctuations in the event a borrower defaults. During the recent mortgage boom of the last decade, it was widespread to see lenders taking down payments of 10, 5 or sometimes 0 percent. How does a lender manage the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional plan takes care of the lender if a borrower is unable to pay on the loan and the worth of the house is less than what is owed on the loan. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and many times isn't even tax deductible. Unlike a piggyback loan where the lender takes in all the damages, PMI is profitable for the lender because they obtain the money, and they get the money 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 prevent bearing the expense of PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law states that, upon request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. So, savvy home owners can get off the hook ahead of time. It can take countless years to get to the point where the principal is only 20% of the original amount of the loan, so it's necessary to know how your home has increased in value. After all, every bit of appreciation you've acquired over the years counts towards abolishing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Despite the fact that nationwide trends signify decreasing home values, understand that real estate is local. Your neighborhood might not be heeding the national trends and/or your home may have acquired equity before things settled down. The hardest 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 is an appraiser's job to understand the market dynamics of their area. At RWA Appraisals, we're experts at recognizing value trends in Port Orchard, Kitsap County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will generally do away with the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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