Have equity in your home? Want a lower payment? An appraisal from Blue Marlin Appraisals, LLC can help you get rid of your PMI.A 20% down payment is usually accepted when purchasing a home. The lender's liability 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 charges of foreclosure, selling the home again, and regular value changes on the chance that a purchaser is unable to pay. During the recent mortgage boom of the last decade, it was customary to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added policy guards the lender in the event a borrower is unable to pay on the loan and the value of the property is lower than what is owed on the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and often isn't even tax deductible. It's beneficial for the lender because they obtain the money, and they get paid if the borrower doesn't pay, opposite from a piggyback loan where the lender absorbs 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 homeowners refrain from bearing the cost of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law states that, upon request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. So, savvy home owners can get off the hook ahead of time. It can take many years to reach the point where the principal is just 20% of the original amount borrowed, so it's important to know how your home has appreciated in value. After all, all of the appreciation you've gained over the years counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Despite the fact that nationwide trends forecast plummeting home values, be aware that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home could have secured equity before things cooled off. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It is an appraiser's job to understand the market dynamics of their area. At Blue Marlin Appraisals, LLC, we know when property values have risen or declined. We're masters at determining value trends in Naples, Collier County and surrounding areas. When faced with information from an appraiser, the mortgage company will usually eliminate the PMI with little anxiety. At that time, the homeowner can delight in the savings from that point on.
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