WD Brinson & Associates can help you remove your Private Mortgage InsuranceA 20% down payment is typically the standard when buying a house. Because the risk for the lender is usually only the difference between the home value and the sum remaining on the loan, the 20% adds a nice buffer against the expenses of foreclosure, reselling the home, and typical value variationsin the event a borrower is unable to pay. The market was taking down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplemental plan guards the lender in case a borrower defaults on the loan and the market price of the home is lower than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and generally isn't even tax deductible, PMI is costly to a borrower. It's money-making for the lender because they collect the money, and they receive payment if the borrower defaults, unlike a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home buyer avoid bearing the cost of PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Savvy homeowners can get off the hook a little early. The law promises that, upon request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. Since it can take countless years to arrive at the point where the principal is only 20% of the original loan amount, it's necessary to know how your home has appreciated in value. After all, any appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Your neighborhood might not be adopting the national trends and/or your home may have gained equity before things calmed down, so even when nationwide trends indicate decreasing home values, you should realize that real estate is local. The toughest thing for many homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to know the market dynamics of our area. At WD Brinson & Associates, we're experts at pinpointing value trends in Fair Oaks, Bexar County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will often eliminate the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.
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