South Shore Appraisals can help you remove your Private Mortgage InsuranceIt's typically known that a 20% down payment is common when getting a mortgage. Because the liability for the lender is often only the difference between the home value and the sum due on the loan, the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and natural value variationson the chance that a borrower is unable to pay. During the recent mortgage upturn of the last decade, it became customary to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to manage the added risk of the low down payment with Private Mortgage Insurance or PMI. This added plan takes care of the lender in case a borrower doesn't pay on the loan and the worth of the home is lower than the loan balance. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and many times isn't even tax deductible, PMI can be costly to a borrower. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is advantageous 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 prevent bearing the expense of PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Keen home owners can get off the hook a little earlier. The law promises that, upon request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the original loan amount, so it's necessary to know how your home has grown in value. After all, any appreciation you've obtained over the years counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% mark? Despite the fact that nationwide trends indicate falling home values, be aware that real estate is local. Your neighborhood might not be adopting the national trends and/or your home could have acquired equity before things settled down. The toughest thing for many home owners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to keep up with the market dynamics of our area. At South Shore Appraisals, we know when property values have risen or declined. We're experts at determining value trends in Schererville, Lake County and surrounding areas. When faced with data from an appraiser, the mortgage company will generally remove the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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