MetroOne Appraisals Inc can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when buying a house. The lender's liability is usually only the remainder between the home value and the sum remaining on the loan, so the 20% supplies a nice cushion against the charges of foreclosure, selling the home again, and regular value changes on the chance that a borrower defaults. The market was taking down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender endure the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added plan protects the lender in case a borrower defaults on the loan and the value of the property is lower than what is owed on the loan. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and often isn't even tax deductible, PMI is pricey to a borrower. Unlike a piggyback loan where the lender absorbs all the damages, PMI is lucrative for the lender because they obtain the money, and they get paid if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homeowners avoid paying PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Savvy home owners can get off the hook a little earlier. The law stipulates that, upon request of the home owner, the PMI must be released when the principal amount equals just 80 percent. Because it can take countless years to reach the point where the principal is only 20% of the original loan amount, it's essential to know how your home has increased in value. After all, every bit of appreciation you've obtained over time counts towards dismissing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% threshold? Even when nationwide trends hint at plunging home values, be aware that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home could have secured equity before things simmered 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. As appraisers, it's our job to know the market dynamics of our area. At MetroOne Appraisals Inc, we know when property values have risen or declined. We're experts at recognizing value trends in Andover, Anoka County and surrounding areas. When faced with information from an appraiser, the mortgage company will generally cancel the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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