Premier Appraisals, Inc. can help you remove your Private Mortgage InsuranceA 20% down payment is usually accepted when buying a house. The lender's liability is oftentimes only the difference between the home value and the sum outstanding on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, reselling the home, and natural value changes in the event a borrower defaults. During the recent mortgage upturn of the last decade, it was widespread to see lenders commanding down payments of 10, 5 or often 0 percent. How does a lender endure the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This additional plan covers the lender in the event a borrower is unable to pay on the loan and the value of the house is less than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and oftentimes isn't even tax deductible, PMI can be pricey to a borrower. It's money-making for the lender because they secure the money, and they get the money if the borrower doesn't pay, opposite from a piggyback loan where the lender takes in all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homeowners can keep from bearing the cost of PMIWith the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law guarantees that, upon request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. So, keen home owners can get off the hook a little earlier. It can take countless years to get to the point where the principal is only 20% of the initial amount of the loan, so it's essential to know how your home has grown in value. After all, all of the appreciation you've gained over time counts towards removing PMI. So why 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 acquired equity before things settled down, so even when nationwide trends indicate plunging home values, you should realize that real estate is local. The toughest thing for almost all home owners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can definitely help. As appraisers, it's our job to understand the market dynamics of our area. At Premier Appraisals, Inc., we're masters at pinpointing value trends in Nesconset, Suffolk County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will usually do away with the PMI with little effort. At that time, the homeowner can retain the savings from that point on.
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