Let Gold Coast Valuations help you decide if you can get rid of your PMIA 20% down payment is typically accepted when buying a house. The lender's risk is oftentimes only the difference between the home value and the amount remaining on the loan, so the 20% provides a nice cushion against the costs of foreclosure, selling the home again, and typical value variations on the chance that a purchaser doesn't pay. During the recent mortgage upturn of the last decade, it became customary to see lenders taking down payments of 10, 5 or sometimes 0 percent. A lender is able to handle the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower is unable to pay on the loan and the value of the property is less than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be costly to a borrower. Unlike a piggyback loan where the lender absorbs all the losses, PMI is favorable for the lender because they acquire the money, and they receive payment if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home owners keep from bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cease the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law guarantees that, at the request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. So, keen homeowners can get off the hook ahead of time. Since it can take countless years to reach the point where the principal is just 20% of the initial loan amount, it's essential to know how your home has appreciated in value. After all, any appreciation you've obtained over the years counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% mark? Your neighborhood might not be adopting the national trends and/or your home might have gained equity before things calmed down, so even when nationwide trends signify falling home values, you should realize that real estate is local. The toughest thing for many homeowners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. It's an appraiser's job to know the market dynamics of their area. At Gold Coast Valuations, we know when property values have risen or declined. We're masters at pinpointing value trends in Orangevale, Sacramento County and surrounding areas. When faced with data from an appraiser, the mortgage company will often eliminate the PMI with little anxiety. At which time, the home owner can retain the savings from that point on.
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