Benchmark Appraising, LLC can help you remove your Private Mortgage InsuranceWhen getting a mortgage, a 20% down payment is usually the standard. Because the risk for the lender is generally only the remainder between the home value and the sum outstanding on the loan, the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and regular value changeson the chance that a purchaser doesn't pay. The market was taking down payments down to 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. How does a lender manage the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional plan covers the lender if a borrower defaults on the loan and the value of the house is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible, PMI can be costly to a borrower. Unlike a piggyback loan where the lender takes in all the costs, PMI is money-making for the lender because they acquire the money, and they receive payment 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 can a home owner keep from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Savvy home owners can get off the hook a little early. The law guarantees that, upon request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. Because it can take many years to get to the point where the principal is only 20% of the original amount of the loan, it's necessary to know how your home has increased in value. After all, all of the appreciation you've obtained over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends signify plummeting home values, realize that real estate is local. Your neighborhood may not be following the national trends and/or your home could have acquired equity before things calmed down. The hardest thing for many home owners 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 understand the market dynamics of their area. At Benchmark Appraising, LLC, we know when property values have risen or declined. We're experts at determining value trends in Kernersville, Forsyth County and surrounding areas. When faced with information from an appraiser, the mortgage company will most often drop the PMI with little trouble. At that time, the homeowner can relish the savings from that point on.
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