Have equity in your home? Want a lower payment? An appraisal from APPRAISAL EXPRESS, INC can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. The lender's liability is generally only the difference between the home value and the sum due on the loan, so the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and regular value fluctuations on the chance that a purchaser doesn't pay. The market was accepting down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower defaults on the loan and the market price of the home is lower than the balance of the loan. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible. It's favorable for the lender because they collect the money, and they get paid if the borrower doesn't pay, opposite from a piggyback loan where the lender absorbs all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can prevent bearing the cost of PMIWith the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cease the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent. So, acute homeowners can get off the hook ahead of time. Considering it can take many years to arrive at the point where the principal is just 20% of the original amount borrowed, it's important to know how your home has grown in value. After all, every bit of appreciation you've gained over the years counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends hint at plunging home values, understand that real estate is local. Your neighborhood may not be adhering to the national trends and/or your home may have gained equity before things settled 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 tough thing to know. It's an appraiser's job to know the market dynamics of their area. At APPRAISAL EXPRESS, INC, we're masters at recognizing value trends in Durango, La Plata County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At that time, the homeowner can retain the savings from that point on.
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