Have equity in your home? Want a lower payment? An appraisal from Russo Residential Appraisals can help you get rid of your PMI.A 20% down payment is usually the standard when getting a mortgage. The lender's risk is generally only the remainder between the home value and the sum due on the loan, so the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and natural value variations in the event a purchaser doesn't pay. During the recent mortgage upturn of the last decade, it was customary to see lenders taking down payments of 10, 5 or often 0 percent. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower doesn't pay on the loan and the market price of the house is less than the balance of the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and generally isn't even tax deductible. Different from a piggyback loan where the lender takes in all the deficits, PMI is beneficial for the lender because they secure the money, and they get paid 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 buyers keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 makes the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law states that, at the request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. So, wise homeowners can get off the hook a little early. Because it can take countless years to reach the point where the principal is just 20% of the initial amount borrowed, it's necessary to know how your home has increased in value. After all, all of the appreciation you've achieved over time counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be reflecting the national trends and/or your home could have gained equity before things cooled off, so even when nationwide trends predict decreasing home values, you should understand that real estate is local. The toughest thing for most home owners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to know the market dynamics of our area. At Russo Residential Appraisals, we know when property values have risen or declined. We're masters at recognizing value trends in Highlands Ranch, Douglas County and surrounding areas. When faced with data from an appraiser, the mortgage company will often cancel the PMI with little anxiety. At which time, the homeowner can retain the savings from that point on.
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