Have equity in your home? Want a lower payment? An appraisal from Jordan Services can help you get rid of your PMI.When getting a mortgage, a 20% down payment is typically the standard. The lender's risk is usually only the difference between the home value and the amount outstanding on the loan, so the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and typical value changes on the chance that a purchaser defaults. During the recent mortgage boom of the mid 2000s, it was widespread to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender if a borrower is unable to pay on the loan and the market price of the home is less than what the borrower still owes on the loan. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times isn't even tax deductible. Opposite from a piggyback loan where the lender consumes all the deficits, PMI is beneficial for the lender because they obtain the money, and they get the money 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 owners keep from paying PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law promises that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. So, wise homeowners can get off the hook a little earlier. It can take many years to get to the point where the principal is just 20% of the initial amount borrowed, so it's crucial to know how your home has increased in value. After all, any appreciation you've accomplished over the years counts towards abolishing PMI. So why pay it after your loan balance has dropped below the 80% mark? Your neighborhood may not be adhering to the national trends and/or your home may have gained equity before things calmed down, so even when nationwide trends indicate plummeting home values, you should realize that real estate is local. The difficult thing for most home owners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can certainly help. It's an appraiser's job to understand the market dynamics of their area. At Jordan Services, we know when property values have risen or declined. We're experts at analyzing value trends in Lufkin, Angelina County and surrounding areas. Faced with data from an appraiser, the mortgage company will often do away with the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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