Have equity in your home? Want a lower payment? An appraisal from Sazima Appraisals can help you get rid of your PMI.A 20% down payment is usually the standard when buying a house. Because the liability for the lender is oftentimes only the remainder between the home value and the amount due on the loan, the 20% supplies a nice buffer against the charges of foreclosure, selling the home again, and natural value fluctuationson the chance that a borrower defaults. Banks were 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 increased risk of the small down payment with Private Mortgage Insurance or PMI. PMI covers the lender if a borrower is unable to pay on the loan and the worth of the home is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible, PMI can be costly to a borrower. Unlike a piggyback loan where the lender absorbs all the damages, PMI is beneficial for the lender because they collect the money, and they receive payment 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 buyers refrain from paying PMI?With 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 reaches 78 percent of the initial loan amount. Keen homeowners can get off the hook beforehand. The law designates that, at the request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent. Since it can take countless years to get to the point where the principal is just 20% of the initial amount borrowed, it's essential to know how your home has grown in value. After all, every bit of appreciation you've accomplished over time counts towards abolishing PMI. So why should you pay it after your loan balance has dropped below the 80% threshold? Your neighborhood might not be following the national trends and/or your home might have acquired equity before things settled down, so even when nationwide trends hint at declining home values, you should understand that real estate is local. The difficult thing for many home owners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. It's an appraiser's job to keep up with the market dynamics of their area. At Sazima Appraisals, we're masters at identifying value trends in Springtown, Wise County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will generally do away with the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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