Aries Appraisals can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when purchasing a home. Since the risk for the lender is usually only the difference between the home value and the sum outstanding on the loan, the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and natural value variationson the chance that a borrower defaults. During the recent mortgage upturn of the mid 2000s, it became common to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to endure the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. This added policy takes care of the lender if a borrower defaults on the loan and the value of the property is lower than what the borrower still owes on the loan. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible. It's beneficial for the lender because they secure the money, and they get the money if the borrower defaults, unlike a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers avoid bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law designates that, at the request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. So, keen homeowners can get off the hook a little earlier. Because it can take countless years to get to the point where the principal is just 20% of the initial amount of the loan, it's important to know how your home has appreciated in value. After all, any appreciation you've accomplished over time counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% mark? Even when nationwide trends signify falling home values, understand that real estate is local. Your neighborhood might not be minding the national trends and/or your home might have acquired equity before things settled down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. As appraisers, it's our job to know the market dynamics of our area. At Aries Appraisals, we know when property values have risen or declined. We're masters at recognizing value trends in Wasilla, Matanuska Susitna County and surrounding areas. Faced with data from an appraiser, the mortgage company will usually remove the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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