Have equity in your home? Want a lower payment? An appraisal from Lusk Appraisal Company can help you get rid of your PMI.When buying a house, a 20% down payment is typically the standard. The lender's liability is usually only the difference between the home value and the sum remaining on the loan, so the 20% supplies a nice buffer against the charges of foreclosure, reselling the home, and natural value variations on the chance that a borrower doesn't pay. During the recent mortgage upturn of the last decade, it was common to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to handle the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplemental policy protects the lender if a borrower defaults on the loan and the worth of the home is lower than the balance of the loan. PMI can be costly to a borrower in that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and many times isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the damages, PMI is money-making 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 a home buyer prevent bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cease the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Savvy homeowners can get off the hook sooner than expected. The law guarantees that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. Considering it can take countless years to get to the point where the principal is just 20% of the initial amount of the loan, it's important to know how your home has increased in value. After all, all of the appreciation you've acquired over time counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be adhering to the national trends and/or your home might have secured equity before things simmered down, so even when nationwide trends signify declining home values, you should understand that real estate is local. The toughest thing for almost all home owners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can certainly help. It is an appraiser's job to recognize the market dynamics of their area. At Lusk Appraisal Company, we're masters at identifying value trends in Wilmington, New Hanover County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will often do away with the PMI with little anxiety. At that time, the homeowner can relish the savings from that point on.
Want to learn more about PMI and the Homeowners Protection Act? Click this link: |