Have equity in your home? Want a lower payment? An appraisal from Appraisal Professionals can help you get rid of your PMI.It's typically known that a 20% down payment is the standard when buying a house. Considering the liability for the lender is generally only the difference between the home value and the amount outstanding on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, reselling the home, and typical value variationson the chance that a borrower defaults. Banks were accepting down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. How does a lender endure the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional policy guards the lender if a borrower doesn't pay on the loan and the value of the home is less than what the borrower still owes on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and generally isn't even tax deductible. It's favorable for the lender because they secure the money, and they get the money if the borrower doesn't pay, different from a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers refrain from paying PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law promises that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. So, wise homeowners can get off the hook sooner than expected. It can take many years to arrive at the point where the principal is just 20% of the initial loan amount, so it's crucial to know how your home has appreciated in value. After all, all of the appreciation you've obtained over time counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Despite the fact that nationwide trends signify falling home values, realize that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home may have secured equity before things simmered down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It is an appraiser's job to know the market dynamics of their area. At Appraisal Professionals, we're masters at determining value trends in Kyle, Hays County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will most often eliminate the PMI with little anxiety. At which time, the homeowner can retain the savings from that point on.
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