Let Appraisal Services of Brandon, Inc . help you decide if you can get rid of your PMIWhen getting a mortgage, a 20% down payment is usually the standard. Considering the liability for the lender is oftentimes only the remainder between the home value and the sum due on the loan, the 20% adds a nice buffer against the expenses of foreclosure, reselling the home, and regular value variationsin the event a borrower defaults. Lenders were working with down payments down to 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. A lender is able to endure the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplemental plan protects the lender in the event a borrower is unable to pay on the loan and the value of the property is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI is costly to a borrower. Different from a piggyback loan where the lender takes in all the losses, PMI is profitable for the lender because they secure the money, and they get the money if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can avoid paying PMIThe Homeowners Protection Act of 1998 requires the lenders on most loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Acute homeowners can get off the hook ahead of time. The law designates that, upon request of the home owner, the PMI must be released when the principal amount equals only 80 percent. Considering it can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, it's necessary to know how your home has appreciated in value. After all, every bit of appreciation you've obtained over the years counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends hint at falling home values, understand that real estate is local. Your neighborhood might not be adopting the national trends and/or your home may have acquired equity before things calmed down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It is an appraiser's job to keep up with the market dynamics of their area. At Appraisal Services of Brandon, Inc ., we know when property values have risen or declined. We're masters at recognizing value trends in Valrico, Hillsborough County and surrounding areas. When faced with data from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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