Determining the value of your home can be a challenge without help from an appraiser. It's useful to keep track of your property's value, even if you aren't selling, since there are many ways to utilize the equity that you have in your home. Here are a few reasons why you should have a real estate appraiser check your home's worth. 

Why You Should Know Your Home's Value 

1. Remove Private Mortgage Insurance (PMI) 

If you paid less than 20% of your property's value as a down payment when you purchased your home, you likely have a PMI plan through your mortgage lender. This plan protects the lender if you default on mortgage payments, and you shoulder the costs by paying extra on your mortgage each month. However, once you've paid off a certain amount of the mortgage or accumulated enough equity, the plan must be dropped. If you bought your home within the last few years and suspect it has increased in value, having it appraised can help you remove your private mortgage insurance and save hundreds or thousands of dollars a year.

2. Evaluate Your Home Insurance 

You don't want to figure out that your home is underinsured following a disaster. Homeowners often get their policy when they purchase their home, but then they don't revisit it in the future. If your home has gone up in value, the policy may not be robust enough to cover the replacement cost based on today's construction expenses. A real estate appraiser can determine your home's value so that you can work with your insurance agent to make sure you have plenty of coverage. 

3. Understand Your Equity 

The equity that you have in your home can be a powerful tool, and you don't have to sell your property to access it. You may be eligible for a home equity line of credit (HELOC). This credit product allows you to access your home's equity to make major purchases. You do have to pay interest if you access the HELOC funds, but in most cases, there is no expense for simply having the line open. This can be powerful in case you need access to the money at any point. 

If you need to determine your home's value, rely on a trained real estate appraiser from Tri-County Appraisals in Loveland, CO. Lead appraiser Kenneth Lavertu, SRA, has more than two decades of experience in the industry. He and his team will carefully evaluate your property and prepare a report that details everything you should know about your home's value. Learn more about appraisals online, or schedule your own by calling (970) 888-3733.