Have equity in your home? Want a lower payment? An appraisal from CJP Appraisal Services can help you get rid of your PMI.When purchasing a home, a 20% down payment is usually the standard. Because the liability for the lender is oftentimes only the difference between the home value and the amount outstanding on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and typical value variationson the chance that a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it was common to see lenders commanding down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender in case a borrower defaults on the loan and the worth of the home is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and often isn't even tax deductible, PMI is costly to a borrower. It's favorable for the lender because they collect the money, and they receive payment if the borrower is unable to pay, separate from a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homeowners can prevent bearing the cost of PMIWith the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Acute homeowners can get off the hook ahead of time. The law guarantees that, upon request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. Since it can take countless years to arrive at the point where the principal is only 20% of the initial amount of the loan, it's important to know how your home has appreciated in value. After all, every bit of appreciation you've obtained over the years counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Even when nationwide trends indicate decreasing home values, understand that real estate is local. Your neighborhood might not be following the national trends and/or your home could have gained equity before things simmered down. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. As appraisers, it's our job to know the market dynamics of our area. At CJP Appraisal Services, we know when property values have risen or declined. We're masters at analyzing value trends in Oak Lawn, Cook County and surrounding areas. Faced with information from an appraiser, the mortgage company will usually cancel the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.
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