Have equity in your home? Want a lower payment? An appraisal from Kordik & Associates, Inc. can help you get rid of your PMI.It's typically understood that a 20% down payment is the standard when getting a mortgage. Because the liability for the lender is oftentimes only the remainder between the home value and the sum outstanding on the loan, the 20% provides a nice cushion against the charges of foreclosure, reselling the home, and typical value fluctuationson the chance that a purchaser defaults. During the recent mortgage upturn of the last decade, it became common to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to endure the increased risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower is unable to pay on the loan and the market price of the house is lower than what the borrower still owes on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and often isn't even tax deductible. Separate from a piggyback loan where the lender absorbs all the damages, PMI is beneficial for the lender because they acquire the money, and they receive payment if the borrower is unable to pay. 
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 PMIThe Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Smart homeowners can get off the hook sooner than expected. The law designates that, upon request of the home owner, the PMI must be abandoned when the principal amount equals just 80 percent. Since it can take many years to reach the point where the principal is just 20% of the initial loan amount, it's essential to know how your home has increased in value. After all, any appreciation you've acquired over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Even when nationwide trends indicate falling home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home may have gained 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 hard thing to know. It is an appraiser's job to keep up with the market dynamics of their area. At Kordik & Associates, Inc., we know when property values have risen or declined. We're masters at determining value trends in Elmhurst, Dupage County and surrounding areas. When faced with data from an appraiser, the mortgage company will often drop the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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