Have equity in your home? Want a lower payment? An appraisal from DK Home Appraisals and Sales, LLC can help you get rid of your PMI.A 20% down payment is typically accepted when buying a house. The lender's liability is often only the difference between the home value and the amount due on the loan, so the 20% provides a nice cushion against the charges of foreclosure, reselling the home, and typical value changes in the event a purchaser defaults. During the recent mortgage upturn of the mid 2000s, it was common to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender handle the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI protects the lender if a borrower doesn't pay on the loan and the worth of the home is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and many times isn't even tax deductible, PMI is costly to a borrower. It's advantageous for the lender because they acquire the money, and they get the money if the borrower doesn't pay, contradictory to 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 homeowners can keep from bearing the expense of PMIThe Homeowners Protection Act of 1998 forces the lenders on most loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Keen home owners can get off the hook beforehand. The law guarantees that, upon request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the initial amount borrowed, so it's crucial to know how your home has appreciated in value. After all, every bit of appreciation you've obtained over the years counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% mark? Your neighborhood might not be heeding the national trends and/or your home might have secured equity before things cooled off, so even when nationwide trends forecast plummeting home values, you should realize that real estate is local. 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 difficult thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At DK Home Appraisals and Sales, LLC, we're experts at pinpointing value trends in Dallas, Dallas County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will usually remove the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.
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