We can help you remove your Private Mortgage Insurance!It's largely known that a 20% down payment is common when purchasing a home. Considering the risk for the lender is usually only the difference between the home value and the sum outstanding on the loan, the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and typical value fluctuations in the event a borrower doesn't pay. The market was working with down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. How does a lender manage the added risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI guards the lender in case a borrower is unable to pay on the loan and the market price of the home is lower than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI is pricey to a borrower. It's advantageous for the lender because they acquire the money, and they get paid if the borrower is unable to pay, unlike a piggyback loan where the lender takes in 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 homebuyers refrain from paying PMI?With the employment of The Homeowners Protection Act of 1998, on most loans' lenders are required to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law pledges that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, wise homeowners can get off the hook a little earlier. Because it can take countless years to reach the point where the principal is just 20% of the initial amount borrowed, it's crucial to know how your home has appreciated in value. After all, any appreciation you've obtained over time counts towards removing PMI. So, what's the reason for paying it after your loan balance has dropped below the 80% mark? Even when nationwide trends signify plunging home values, realize that real estate is local. Your neighborhood might not be adopting the national trends and/or your home might have gained equity before things settled down. The hardest thing for many homeowners to know is just when their home's equity goes over the 20% point. An accredited, certified real estate appraiser can surely help. It is an appraiser's job to keep up with the market dynamics of their area. At Appraisals by Yawn & Associates, LLC, we know when property values have risen or declined. We're experts at recognizing value trends in the Brazos Valley. When faced with information from an appraiser, the mortgage company will generally drop the PMI with little effort. At which time, the homeowner can retain the savings from that point on.
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