Have equity in your home? Want a lower payment? An appraisal from Financial Appraisals, LLC can help you get rid of your PMI.A 20% down payment is typically the standard when buying a house. The lender's liability is generally only the remainder between the home value and the amount remaining on the loan, so the 20% supplies a nice cushion against the charges of foreclosure, reselling the home, and typical value changes on the chance that a purchaser defaults. During the recent mortgage upturn of the last decade, it became customary to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender manage the additional risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This added policy covers the lender in case a borrower doesn't pay on the loan and the worth of the home is less than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and frequently isn't even tax deductible, PMI is pricey to a borrower. It's lucrative for the lender because they secure the money, and they receive payment if the borrower defaults, unlike a piggyback loan where the lender takes in 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 a home owner avoid paying PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Wise home owners can get off the hook ahead of time. The law states that, upon request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. It can take countless years to get to the point where the principal is only 20% of the original loan amount, so it's essential to know how your home has grown in value. After all, every bit of appreciation you've gained over time counts towards removing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Despite the fact that nationwide trends signify plunging home values, realize that real estate is local. Your neighborhood may not be heeding the national trends and/or your home could have gained equity before things calmed 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 tough thing to know. It's an appraiser's job to recognize the market dynamics of their area. At Financial Appraisals, LLC, we know when property values have risen or declined. We're masters at determining value trends in Tenafly, Bergen County and surrounding areas. When faced with data from an appraiser, the mortgage company will often cancel the PMI with little anxiety. At which time, the home owner can delight in the savings from that point on.
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