Have equity in your home? Want a lower payment? An appraisal from Nuehring Appraisal Service can help you get rid of your PMI.It's widely understood that a 20% down payment is accepted when buying a house. The lender's risk is usually only the difference between the home value and the amount remaining on the loan, so the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and typical value variations on the chance that a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it became common to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to endure the added risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI protects 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 bundled into the mortgage payment and oftentimes isn't even tax deductible, PMI is costly to a borrower. Opposite from a piggyback loan where the lender takes in all the damages, PMI is profitable 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 can a home buyer refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law states that, at the request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. So, keen home owners can get off the hook ahead of time. Since it can take many years to reach the point where the principal is just 20% of the original loan amount, it's crucial to know how your home has appreciated in value. After all, all of the appreciation you've achieved over the years counts towards abolishing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Your neighborhood might not be adopting the national trends and/or your home might have gained equity before things calmed down, so even when nationwide trends hint at plummeting home values, you should realize that real estate is local. 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 keep up with the market dynamics of our area. At Nuehring Appraisal Service, we know when property values have risen or declined. We're experts at analyzing value trends in Randall, Morrison County and surrounding areas. Faced with information from an appraiser, the mortgage company will usually cancel the PMI with little anxiety. At that time, the homeowner can retain the savings from that point on.
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