Let Nationwide Property Valuation help you decide if you can get rid of your PMIIt's largely known that a 20% down payment is the standard when getting a mortgage. Considering the liability for the lender is usually only the remainder between the home value and the sum remaining on the loan, the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and typical value changesin the event a purchaser is unable to pay. Banks were taking down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the added risk of the low down payment with Private Mortgage Insurance or PMI. This added policy takes care of the lender if a borrower defaults on the loan and the market price of the property is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and frequently isn't even tax deductible, PMI can be pricey to a borrower. Separate from a piggyback loan where the lender takes in all the deficits, PMI is favorable for the lender because they collect the money, and they get paid 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 home owners can keep from bearing the cost of PMIWith the employment of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Smart homeowners can get off the hook a little early. The law guarantees that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. Because it can take countless years to reach the point where the principal is just 20% of the initial amount borrowed, it's essential to know how your home has appreciated 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% threshold? Despite the fact that nationwide trends signify decreasing home values, understand that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home might have secured equity before things settled down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. As appraisers, it's our job to know the market dynamics of our area. At Nationwide Property Valuation, we know when property values have risen or declined. We're experts at determining value trends in La Jolla, San Diego County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often remove the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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