Let Patten Diversified Services, Inc help you figure out if you can cancel your PMIIt's widely inferred that a 20% down payment is common when getting a mortgage. The lender's liability is oftentimes only the remainder between the home value and the amount remaining on the loan, so the 20% adds a nice cushion against the expenses of foreclosure, reselling the home, and regular value variations on the chance that a purchaser is unable to pay. During the recent mortgage boom of the mid 2000s, it became common to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to handle the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplemental policy guards the lender in the event a borrower doesn't pay on the loan and the worth of the property is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and frequently isn't even tax deductible, PMI can be pricey to a borrower. It's advantageous for the lender because they obtain the money, and they get the money if the borrower doesn't 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 a homeowner prevent bearing the cost of PMI?The Homeowners Protection Act of 1998 obligates the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Acute homeowners can get off the hook a little early. The law stipulates that, at the request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. Since it can take many years to reach the point where the principal is only 20% of the original amount borrowed, it's crucial to know how your home has increased in value. After all, any appreciation you've gained over the years counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends forecast plummeting home values, understand that real estate is local. Your neighborhood may not be minding the national trends and/or your home may have secured equity before things settled down. A certified, licensed real estate appraiser can help homeowners 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 recognize the market dynamics of our area. At Patten Diversified Services, Inc, we know when property values have risen or declined. We're experts at determining value trends in Helotes, Bexar County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often eliminate the PMI with little trouble. At that time, the homeowner can delight in the savings from that point on.
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