Appraisal Professionals can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when getting a mortgage. The lender's risk is usually only the difference between the home value and the amount due on the loan, so the 20% adds a nice cushion against the expenses of foreclosure, reselling the home, and natural value changes in the event a borrower is unable to pay. Banks were accepting down payments down to 10, 5 and often 0 percent during the mortgage boom of the mid 2000s. How does a lender handle the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower defaults on the loan and the worth of the home is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and often isn't even tax deductible, PMI can be pricey to a borrower. Separate from a piggyback loan where the lender absorbs all the losses, PMI is beneficial for the lender because they secure 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 can home owners prevent paying PMI?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Smart home owners can get off the hook ahead of time. The law pledges that, upon request of the home owner, the PMI must be abandoned when the principal amount equals just 80 percent. It can take countless years to reach the point where the principal is only 20% of the initial amount of the loan, so it's necessary to know how your home has grown in value. After all, all of the appreciation you've gained over time counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be reflecting the national trends and/or your home could have secured equity before things settled down, so even when nationwide trends predict decreasing home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It's an appraiser's job to keep up with the market dynamics of their area. At Appraisal Professionals, we know when property values have risen or declined. We're experts at determining value trends in Kyle, Hays County and surrounding areas. Faced with data from an appraiser, the mortgage company will often do away with the PMI with little effort. At that time, the homeowner can enjoy the savings from that point on.
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