Have equity in your home? Want a lower payment? An appraisal from Southern Coast Appraisals LLC can help you get rid of your PMI.

A 20% down payment is usually accepted when buying a house. Because the liability for the lender is usually only the difference between the home value and the amount remaining on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and natural value fluctuations on the chance that a borrower doesn't pay.

During the recent mortgage boom of the last decade, it was customary to see lenders making deals with down payments of 10, 5, 3 or sometimes 0 percent. A lender is able to manage the increased risk of the low down payment with Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower defaults on the loan and the value of the house is less than what the borrower still owes on the loan.

PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible. As opposed to a piggyback loan where the lender absorbs all the damages, PMI is advantageous for the lender because they secure the money, and they are covered if the borrower defaults.


	The savings from getting rid of the PMI required when you got your mortgage will make up for the price of the appraisal in no time. Southern Coast Appraisals LLC has years of experience with value trends in the city of Ocean Springs and Jackson County. Contact us today.

How home owners can prevent paying PMI

With the implementation of The Homeowners Protection Act of 1998, lenders are forced to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount on most loans. The law designates that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. So, wise home owners can get off the hook sooner than expected.

Considering it can take many years to get to the point where the principal is only 80% of the original amount of the loan, it's important to know how your Mississippi home has grown in value. After all, every bit of appreciation you've achieved over the years counts towards removing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Your neighborhood may not follow national trends and/or your home could have secured equity before the economy declined. So even when nationwide trends predict declining home values, you should realize that real estate is local.

An accredited, Mississippi licensed real estate appraiser can help homeowners figure out just when their home's equity goes over the 20% point, as it's a tough thing to know. It's an appraiser's job to keep up with the market dynamics of their area. At Southern Coast Appraisals LLC, we're masters at analyzing value trends in Ocean Springs, Jackson County, and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will most often drop the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.


	The savings from getting rid of the PMI required when you got your mortgage pays for the appraisal in a matter of months. Nobody is more qualified than Southern Coast Appraisals LLC when it comes to appreciating values in Ocean Springs and Jackson County. Contact us today.

Want to learn more about PMI and the Homeowners Protection Act? Click this link:

Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year