Let H3 Appraisal help you figure out if you can get rid of your PMIA 20% down payment is typically the standard when buying a house. Since the risk 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 charges of foreclosure, reselling the home, and typical value fluctuationsin the event a borrower is unable to pay. The market was taking down payments down to 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower doesn't pay on the loan and the value of the property is lower than what is owed on the loan. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and frequently isn't even tax deductible. Contradictory to a piggyback loan where the lender takes in all the costs, 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 homebuyers can prevent paying PMIThe Homeowners Protection Act of 1998 makes the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Acute home owners can get off the hook beforehand. The law states that, at the request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. It can take many years to reach the point where the principal is just 20% of the initial amount of the loan, so it's important to know how your home has appreciated in value. After all, all of the appreciation you've achieved over time counts towards abolishing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Even when nationwide trends forecast plunging home values, be aware that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home could have acquired equity before things settled down. An accredited, 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 recognize the market dynamics of their area. At H3 Appraisal, we're experts at analyzing value trends in Russellville, Pope County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will most often cancel the PMI with little effort. At that time, the home owner can retain the savings from that point on.
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