Have equity in your home? Want a lower payment? An appraisal from Tuttle Residential Appraisal can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. Considering the liability for the lender is generally only the difference between the home value and the amount remaining on the loan, the 20% provides a nice cushion against the costs of foreclosure, reselling the home, and regular value variationsin the event a purchaser doesn't pay. Banks were taking down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to handle the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. This added policy takes care of the lender in the event a borrower is unable to pay on the loan and the worth of the property is less than what the borrower still owes on the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI can be expensive to a borrower. Contradictory to a piggyback loan where the lender consumes all the damages, PMI is beneficial for the lender because they acquire 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 homebuyers can keep from bearing the cost of PMIWith the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law designates that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, wise homeowners can get off the hook a little earlier. Since it can take countless years to arrive at the point where the principal is only 20% of the original amount of the loan, it's essential to know how your home has appreciated in value. After all, all of the appreciation you've gained over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Despite the fact that nationwide trends predict declining home values, be aware that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home may have secured equity before things cooled off. The difficult thing for most home owners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Tuttle Residential Appraisal, we know when property values have risen or declined. We're experts at determining value trends in , De Witt County and surrounding areas. Faced with information from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At which time, the home owner can delight in the savings from that point on.
Want to learn more about PMI and the Homeowners Protection Act? Click this link: |