Have equity in your home? Want a lower payment? An appraisal from Accurate Valuation LLC can help you get rid of your PMI.When buying a house, a 20% down payment is usually the standard. Because the liability for the lender is usually only the remainder between the home value and the sum due on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and regular value variationsin the event a purchaser doesn't pay. Lenders were accepting down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to handle the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplementary policy protects the lender in case a borrower defaults on the loan and the value of the property is less than what the borrower still owes on 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 can be expensive to a borrower. Different from a piggyback loan where the lender consumes all the deficits, PMI is favorable for the lender because they acquire 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 homeowners can refrain from bearing the expense of PMIWith the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law stipulates that, at the request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. So, keen homeowners can get off the hook a little earlier. It can take countless years to arrive at the point where the principal is just 20% of the original loan amount, so it's crucial to know how your home has appreciated in value. After all, every bit of appreciation you've acquired over the years counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends predict falling home values, realize that real estate is local. Your neighborhood might not be minding the national trends and/or your home may have secured equity before things cooled off. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It's an appraiser's job to recognize the market dynamics of their area. At Accurate Valuation LLC, we know when property values have risen or declined. We're experts at analyzing value trends in Wellington, Larimer County and surrounding areas. When faced with figures from an appraiser, the mortgage company will most often eliminate the PMI with little trouble. At which time, the homeowner can relish the savings from that point on.
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