Have equity in your home? Want a lower payment? An appraisal from Di Cicco & Associates can help you get rid of your PMI.It's widely inferred that a 20% down payment is accepted when buying a house. The lender's risk is oftentimes only the difference between the home value and the amount due on the loan, so the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and regular value changes in the event a purchaser doesn't pay. The market was working with down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower doesn't pay on the loan and the value of the house is less than the balance of the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and oftentimes isn't even tax deductible. It's advantageous for the lender because they obtain the money, and they get paid if the borrower doesn't pay, unlike a piggyback loan where the lender takes in all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can avoid bearing the cost of PMIThe Homeowners Protection Act of 1998 makes 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. Keen homeowners can get off the hook ahead of time. The law pledges that, upon request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. Because it can take countless years to arrive at the point where the principal is just 20% of the original loan amount, it's crucial to know how your home has increased in value. After all, all of the appreciation you've acquired over the years counts towards removing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home might have gained equity before things simmered down, so even when nationwide trends signify plunging home values, you should understand that real estate is local. The hardest thing for many home owners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to recognize the market dynamics of our area. At Di Cicco & Associates, we know when property values have risen or declined. We're experts at determining value trends in Palm Beach Garden, Palm Beach County and surrounding areas. When faced with information from an appraiser, the mortgage company will most often drop the PMI with little trouble. At which time, the home owner can delight in the savings from that point on.
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