Have equity in your home? Want a lower payment? An appraisal from Mowry Appraisals SW LLC can help you get rid of your PMI.It's generally understood that a 20% down payment is common when purchasing a home. Considering the liability for the lender is often only the difference between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and natural value changesin the event a purchaser is unable to pay. During the recent mortgage boom of the last decade, it became common to see lenders taking down payments of 10, 5 or often 0 percent. A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplemental policy covers the lender if a borrower doesn't pay on the loan and the value of the house is less than what is owed on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the losses, PMI is favorable for the lender because they collect the money, and they get the money if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can keep from paying PMIThe Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Keen homeowners can get off the hook ahead of time. The law pledges that, upon request of the home owner, the PMI must be dropped when the principal amount equals just 80 percent. Since it can take countless years to reach the point where the principal is only 20% of the initial amount of the loan, it's important to know how your home has increased in value. After all, any appreciation you've acquired over the years counts towards abolishing PMI. So why should you pay it after your loan balance has dropped below the 80% threshold? Even when nationwide trends predict decreasing home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home could have acquired equity before things cooled off. The toughest thing for most homeowners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can definitely help. It's an appraiser's job to know the market dynamics of their area. At Mowry Appraisals SW LLC, we know when property values have risen or declined. We're experts at pinpointing value trends in Albuquerque, Bernalillo County and surrounding areas. When faced with data from an appraiser, the mortgage company will most often eliminate the PMI with little trouble. At that time, the homeowner can retain the savings from that point on.
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