Have equity in your home? Want a lower payment? An appraisal from All City Appraisal can help you get rid of your PMI.A 20% down payment is usually accepted when getting a mortgage. Since the risk for the lender is often only the remainder between the home value and the sum due on the loan, the 20% adds a nice buffer against the charges of foreclosure, selling the home again, and natural value fluctuationson the chance that a borrower is unable to pay. Banks were accepting down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender if a borrower doesn't pay on the loan and the market price of the home is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible, PMI can be costly to a borrower. Separate from a piggyback loan where the lender takes in all the losses, PMI is profitable for the lender because they secure 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 can homebuyers keep from bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law stipulates that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. So, keen home owners can get off the hook sooner than expected. Considering it can take many years to arrive at the point where the principal is only 20% of the initial loan amount, it's essential to know how your home has increased in value. After all, any appreciation you've obtained over time counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends hint at plummeting home values, understand that real estate is local. Your neighborhood may not be adhering to the national trends and/or your home could have gained equity before things settled down. A certified, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It is an appraiser's job to recognize the market dynamics of their area. At All City Appraisal, we're experts at identifying value trends in Woodland Hills, Los Angeles County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will generally remove the PMI with little effort. At which time, the homeowner can relish the savings from that point on.
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