Have equity in your home? Want a lower payment? An appraisal from Gary W. Miller can help you get rid of your PMI.

A 20% down payment is typically the standard when getting a mortgage. The lender's only exposure is generally just the remainder between the home value and the sum outstanding on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and regular value changes on the chance that a borrower is unable to pay.

The market was accepting down payments discounted to 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to manage the increased risk of the small down payment with Private Mortgage Insurance or PMI. This additional plan takes care of the lender if a borrower defaults on the loan and the value of the property is lower than the balance of the loan.

PMI can be pricey to a borrower on the grounds that 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 acquire the money, and they get the money if the borrower defaults, separate from a piggyback loan where the lender consumes all the losses.


	Does your monthly mortgage payment include a fee PMI? Call Gary W. Miller today at 9046354325 or send us an e-mail. A current appraisal could save you thousands.

How buyers can avoid bearing the cost of PMI

As a result of The Homeowners Protection Act of 1998, lenders are obligated to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount on most loans. Wise home owners can get off the hook a little earlier. The law states that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent.

It can take many years to reach the point where the principal is only 80% of the initial loan amount, so it's important to know how your Florida home has increased in value. After all, any appreciation you've accomplished over the years counts towards removing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% threshold? Your neighborhood may not conform to national trends and/or your home may have secured equity before things simmered down. So even when nationwide trends forecast decreasing home values, you should understand that real estate is local.

An accredited, Florida licensed real estate appraiser can help homeowners figure out if their equity has made it to the 20% point, as it's a tough thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Gary W. Miller, we know when property values have risen or declined. We're experts at recognizing value trends in Orange Park, Clay County, and surrounding areas. When faced with figures from an appraiser, the mortgage company will most often drop the PMI with little trouble. At that time, the home owner can retain the savings from that point on.


	Did you secure your mortgage with less than 20% down? Contact Gary W. Miller today at 9046354325 to see if you can cancel your Private Mortgage Insurance premium.

Want to learn more about PMI and the Homeowners Protection Act? Click this link:

Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year