Prime Appraisals can help you remove your Private Mortgage InsuranceIt's largely understood that a 20% down payment is the standard when buying a house. Considering the risk for the lender is oftentimes only the difference between the home value and the amount due on the loan, the 20% provides a nice cushion against the charges of foreclosure, selling the home again, and natural value variationson the chance that a purchaser is unable to pay. During the recent mortgage upturn of the last decade, it was customary to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to manage the added risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower is unable to pay on the loan and the value of the property is lower 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 often isn't even tax deductible. Contradictory to a piggyback loan where the lender absorbs all the losses, PMI is advantageous for the lender because they collect the money, and they get paid if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can refrain from bearing the expense of PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Acute homeowners can get off the hook beforehand. The law pledges that, at the request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. Since it can take countless years to reach the point where the principal is only 20% of the initial loan amount, it's essential to know how your home has grown in value. After all, every bit of appreciation you've accomplished over the years counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Despite the fact that nationwide trends predict plummeting home values, understand that real estate is local. Your neighborhood might not be heeding the national trends and/or your home could have secured equity before things calmed down. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It's an appraiser's job to know the market dynamics of their area. At Prime Appraisals, we know when property values have risen or declined. We're experts at recognizing value trends in Hudson, Hillsborough County and surrounding areas. When faced with information from an appraiser, the mortgage company will often cancel the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.
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