Trigg, Catlett & Associates can help you remove your Private Mortgage InsuranceWhen purchasing a home, a 20% down payment is usually the standard. Since the liability for the lender is often only the remainder between the home value and the amount due on the loan, the 20% provides a nice cushion against the costs of foreclosure, selling the home again, and typical value variationsin the event a purchaser is unable to pay. Banks were 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 additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower is unable to pay on the loan and the worth of the house is lower than what the borrower still owes on the loan. PMI is costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and oftentimes isn't even tax deductible. It's advantageous for the lender because they secure the money, and they get paid if the borrower is unable to pay, opposite from a piggyback loan where the lender takes in all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homebuyers can avoid paying PMIThe Homeowners Protection Act of 1998 makes the lenders on most loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Wise home owners can get off the hook ahead of time. The law guarantees that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. Considering it can take countless years to reach the point where the principal is just 20% of the initial amount borrowed, it's important to know how your home has increased in value. After all, any appreciation you've obtained over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% threshold? Your neighborhood may not be following the national trends and/or your home could have acquired equity before things cooled off, so even when nationwide trends signify falling home values, you should understand that real estate is local. The difficult 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 certainly help. As appraisers, it's our job to know the market dynamics of our area. At Trigg, Catlett & Associates, we're experts at pinpointing value trends in Tampa, Hillsborough County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will often cancel the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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