Have equity in your home? Want a lower payment? An appraisal from Hometown Appraisals & Realty can help you get rid of your PMI.It's widely understood that a 20% down payment is accepted when getting a mortgage. The lender's risk is usually only the difference between the home value and the sum outstanding on the loan, so the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and typical value variations in the event a purchaser doesn't pay. During the recent mortgage upturn of the mid 2000s, it was common to see lenders requiring down payments of 10, 5 or sometimes 0 percent. A lender is able to handle the increased risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower defaults on the loan and the worth of the home is less than the balance of the loan. PMI can be pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and often isn't even tax deductible. Separate from a piggyback loan where the lender absorbs all the deficits, PMI is favorable for the lender because they acquire 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 buyers can prevent bearing the expense of PMIWith the implementation of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law states that, upon request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. So, keen home owners can get off the hook sooner than expected. It can take many years to get to the point where the principal is just 20% of the original amount of the loan, so it's crucial to know how your home has increased in value. After all, any appreciation you've gained over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Your neighborhood may not be following the national trends and/or your home could have secured equity before things cooled off, so even when nationwide trends hint at decreasing home values, you should realize that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Hometown Appraisals & Realty, we're masters at identifying value trends in White Sulphur Springs, Greenbrier 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 anxiety. At which time, the homeowner can enjoy the savings from that point on.
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