Let Record Appraisals, Inc help you decide if you can get rid of your PMIA 20% down payment is typically the standard when buying a house. Considering the liability for the lender is often only the remainder between the home value and the sum outstanding on the loan, the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and typical value variationson the chance that a borrower defaults. During the recent mortgage upturn of the last decade, it was customary to see lenders commanding down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the added risk of the small down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower defaults on the loan and the value of the house is less than what is owed on the loan. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and generally isn't even tax deductible. It's favorable for the lender because they obtain the money, and they get the money if the borrower doesn't 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 can homebuyers avoid paying PMI?With the implementation 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 primary loan amount. Keen home owners can get off the hook ahead of time. The law promises that, at the request of the home owner, the PMI must be released 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 important to know how your home has increased in value. After all, any appreciation you've obtained over time counts towards abolishing PMI. So why pay it after the balance of your loan has dropped below the 80% mark? Despite the fact that nationwide trends forecast falling home values, realize that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home could have secured equity before things calmed down. A certified, 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 understand the market dynamics of their area. At Record Appraisals, Inc, we know when property values have risen or declined. We're masters at pinpointing value trends in Sayville, Suffolk County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often remove the PMI with little anxiety. At which time, the home owner can retain the savings from that point on.
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