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PMI Removal:

We provide "home appraisal services" which are used to remove the PMI expense you now pay on your current mortgage.

If you believe you now have enough "equity" in your home to apply for the PMI removal, then we can help.

We have been successful at helping hundreds of home owners in the Austin Metroplex Area remove the PMI expense from their mortgage payment. 

Private Mortgage Insurance (PMI): 

PMI is an insurance product, you pay for, which is designed to help protect the lender (mortgage holder) from loss on their investment in case of default on the loan (foreclosure). It is typically designed to protect only the top 20-25% of the value of the home, as determined by the product type, and at the time of the loan transaction. It is a requirement of most lending programs for real property (home) loans which exceed 80% LTV (Loan to Value Ratio). The mortgage loan is supported by (collateralized by) the "as current" market value of the stated real property (home). You do not have to purchase or continue to pay for such an PMI insurance product if you show that you have at least 20% (or in some cases 25%) equity in the real property (home), as per a market value appraisal &/or cash down payments. 

The change (increase) in home equity is typically achieved by a combination of:

  1. Regular mortgage loan principle payments reducing the loan amount over time.
  2. Appreciation in the "market value" of the home.
  3. Additional Cash payments made to lower the loan amount.

We Provide "PMI Appraisal Services" for residential real estate within the following Texas Counties, Cities and Communities:

  • Travis County Appraisals; and including the cities of Austin, Westlake Hills, Pflugerville, Manor, Lake Travis, Lakeway, Lago Vista, Jonestown, Rollingwood, Sunset Valley, Manchaca, Del Valle, Onion Creek, Bee Cave, Oak Hill, and Briarcliff
  • Williamson County Appraisals; and including the cities of Round Rock, Cedar Park, Leander, Liberty Hill, Georgetown, Taylor, Hutto, Granger, and Walburg
  • Hays County Appraisals; and including the cities of Buda, Kyle, Dripping Springs, Wimberly, Driftwood, and Henly
  • Bastrop County Appraisals; and including the cities of Bastrop, Elgin, Red Rock, Cedar Creek, and McDade
  • Caldwell County Appraisals; and including the cities of Lockhart, Dale, Niederwald, Mendoza, and McMahan
  • Blanco County Appraisals; and including the cities of Blanco, Johnson City, Twin Sisters, Round Mountain, and Cypress Mill
  • Burnet County Appraisals; and including the cities of Burnet, Marble Falls, Spicewood, Smithwick, Granite Shoals, Sun Rise Beach Village, and Kingsland

Appraising Residential Real Estate, including:

houses, condos, townhomes, garden homes; duplexes, fourplexes, and other small income (residential) property; residential lots, and vacant land; small ranches, and gentlemen ranches.

For additional information about our Services, please contact:

Dan Birchman, MBA CEBA ABR GRI

(512) 329-9144  (or)  email Dan @ dan@austinappraiser.net

 

Some basics about PMI and how to get rid of it:

In PMI has been a large moneymaker for the mortgage lenders. The amount of the insurance often $40-$50 per month for a $100,000 house is commonly rolled into the mortgage payment. Given the size of the overall payment, this additional fee is often overlooked. Homeowners continue to pay the PMI even after their loan balance has dropped below the original 80 percent threshold. This occurs naturally, of course, as the home owner pays down the principal on the loan. On a typical 30-year loan, however, it can take many years to reach that point.

Until recently lenders were under no obligation to tell home owners when they had reached a point where the PMI can be dropped. That all changed in 1999, when the Homeowners Protection Act took effect. In most cases, this law now obligates lenders to terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Savvy homeowners can get off the hook a little earlier. The law stipulates that, upon request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent!

It is important to note that this law only applies to home loans whether first time or refinances that closed after July, 1999. Also certain other conditions must be met, such as being current on the loan payments. Buyers that purchased before July 1999 can also have their PMI removed, but they must initiate the process and though the lender is under no obligation to do so, most will.

Of course, there is another way that home owners equity can reach beyond the 80/20 percent ratio. Many areas of the United States have seen significant gains in the value of real estate over the past decade. In fact, certain areas have seen appreciation levels of 100 percent or more. Even those people living in areas with more modest gains may find that the value of their property has quickly grown to the point where the amount of principal they owe on their loan is less than 80 percent of the homes current value. Again, in these cases, the lenders are under no legal obligation to remove the PMI. In most cases, however, as long as the home owner has been prompt on their loan payments and don't represent an exceptional risk, the lenders will agree to remove the extra fees.

The hardest thing for most home owners to know is just when does their home equity rise above this magical 20 percent point? A Texas State Certified, Licensed Real Estate Appraiser can certainly help. It is an appraisers job to know the market dynamics of their area. They know when property values have risen or declined. Many appraisers offer specific services to help customers find the value of their homes and remove PMI payments. Faced with this data, the mortgage company will most often eliminate the PMI with little trouble. The savings from dropping the PMI pays for the appraisal in a matter of months. At which time, the home owner can enjoy the savings from that point on.

For more information on PMI and the Homeowners Protection Act, try one of these links:

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

Private Mortgage Insurance (PMI): Law Requires Lenders to Cancel PMI