Have equity in your home? Want a lower payment? An appraisal from Bartell Appraisal Services, LLC can help you get rid of your PMI.A 20% down payment is typically the standard when buying a house. The lender's risk is oftentimes only the remainder between the home value and the amount outstanding on the loan, so the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and natural value variations in the event a purchaser defaults. During the recent mortgage boom of the last decade, it was widespread to see lenders requiring down payments of 10, 5 or even 0 percent. How does a lender endure the additional risk of the small down payment? The solution is Private Mortgage Insurance or PMI. This added policy protects the lender if a borrower is unable to pay on the loan and the worth of the property is less than what the borrower still owes on the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible. It's beneficial for the lender because they collect the money, and they get the money if the borrower doesn't pay, different from a piggyback loan where the lender consumes all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer keep from paying PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law promises that, upon request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent. So, wise homeowners can get off the hook ahead of time. Since it can take many years to reach the point where the principal is just 20% of the original amount borrowed, it's crucial to know how your home has increased in value. After all, all of the appreciation you've gained over the years counts towards abolishing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% mark? Your neighborhood might not be adhering to the national trends and/or your home might have gained equity before things simmered down, so even when nationwide trends signify decreasing home values, you should realize that real estate is local. The difficult thing for most homeowners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to recognize the market dynamics of our area. At Bartell Appraisal Services, LLC, we're masters at pinpointing value trends in Park Ridge, Cook 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 often do away with the PMI with little trouble. At which time, the homeowner can enjoy the savings from that point on.
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