Point Appraisal Company can help you remove your Private Mortgage InsuranceIt's generally known that a 20% down payment is the standard when purchasing a home. Since the liability for the lender is generally only the difference between the home value and the sum due on the loan, the 20% adds a nice cushion against the charges of foreclosure, reselling the home, and regular value changeson the chance that a borrower defaults. During the recent mortgage upturn of the mid 2000s, it became customary to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to endure the increased risk of the minimal 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 lower than what is owed on the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and frequently isn't even tax deductible, PMI is pricey to a borrower. It's profitable for the lender because they obtain the money, and they get paid if the borrower is unable to pay, unlike a piggyback loan where the lender absorbs all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers keep from bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Wise homeowners can get off the hook sooner than expected. The law stipulates that, upon request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. It can take many years to arrive at the point where the principal is only 20% of the original amount of the loan, so it's important to know how your home has increased in value. After all, any appreciation you've gained over the years counts towards abolishing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Despite the fact that nationwide trends forecast declining home values, realize that real estate is local. Your neighborhood might not be heeding the national trends and/or your home might have gained equity before things simmered down. The hardest thing for almost all homeowners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to understand the market dynamics of our area. At Point Appraisal Company, we're masters at determining value trends in Point Pleasant, Ocean County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will most often eliminate the PMI with little effort. At which time, the homeowner can retain the savings from that point on.
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