Have equity in your home? Want a lower payment? An appraisal from Premier Appraisals, Inc. can help you get rid of your PMI.It's generally inferred that a 20% down payment is common when purchasing a home. The lender's risk is often only the difference between the home value and the amount remaining on the loan, so the 20% supplies a nice buffer against the costs of foreclosure, reselling the home, and regular value fluctuations on the chance that a purchaser is unable to pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders taking down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. This added plan guards the lender in the event a borrower defaults on the loan and the value of the home is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and frequently isn't even tax deductible, PMI can be expensive to a borrower. It's money-making for the lender because they collect the money, and they receive payment if the borrower is unable to pay, opposite from a piggyback loan where the lender absorbs all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homebuyers can refrain from bearing the expense of PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Wise home owners can get off the hook a little earlier. The law stipulates that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. Since it can take many years to arrive at the point where the principal is just 20% of the initial amount borrowed, it's important to know how your home has increased in value. After all, any appreciation you've obtained over the years counts towards removing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Your neighborhood might not be adhering to the national trends and/or your home might have acquired equity before things cooled off, so even when nationwide trends forecast decreasing home values, you should understand that real estate is local. The toughest thing for almost all home owners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to recognize the market dynamics of their area. At Premier Appraisals, Inc., we know when property values have risen or declined. We're masters at pinpointing value trends in Nesconset, Suffolk County and surrounding areas. Faced with data from an appraiser, the mortgage company will often eliminate the PMI with little trouble. At that time, the homeowner can retain the savings from that point on.
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