Nathaniel A. Shaffer Appraisal, LLC. can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when getting a mortgage. Considering the risk for the lender is usually only the remainder between the home value and the sum remaining on the loan, the 20% supplies a nice cushion against the charges of foreclosure, reselling the home, and natural value fluctuationsin the event a purchaser is unable to pay. During the recent mortgage boom of the mid 2000s, it was customary to see lenders commanding down payments of 10, 5 or often 0 percent. How does a lender endure the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This supplementary policy covers the lender in the event a borrower doesn't pay on the loan and the market price of the property is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and frequently isn't even tax deductible, PMI can be expensive to a borrower. Contradictory to a piggyback loan where the lender takes in all the damages, PMI is beneficial for the lender because they acquire 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 homeowners can avoid bearing the cost of PMIThe Homeowners Protection Act of 1998 makes the lenders on most loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law states that, upon request of the home owner, the PMI must be abandoned when the principal amount equals just 80 percent. So, smart home owners can get off the hook sooner than expected. Because it can take countless years to arrive at the point where the principal is just 20% of the original amount borrowed, it's essential to know how your home has grown in value. After all, any appreciation you've gained over the years counts towards removing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends hint at declining home values, understand that real estate is local. Your neighborhood might not be heeding the national trends and/or your home could have secured equity before things settled down. The hardest 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. As appraisers, it's our job to keep up with the market dynamics of our area. At Nathaniel A. Shaffer Appraisal, LLC., we know when property values have risen or declined. We're experts at recognizing value trends in Varnville, Hampton County and surrounding areas. When faced with figures from an appraiser, the mortgage company will usually eliminate the PMI with little trouble. At which time, the home owner can retain the savings from that point on.
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