Have equity in your home? Want a lower payment? An appraisal from Stephens Appraisals of Central Florida can help you get rid of your PMI.It's typically inferred that a 20% down payment is common when purchasing a home. Because the risk for the lender is oftentimes only the remainder between the home value and the amount remaining on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and typical value fluctuationson the chance that a borrower is unable to pay. The market was taking down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower doesn't pay on the loan and the worth of the property is less than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible, PMI is pricey to a borrower. It's lucrative for the lender because they acquire the money, and they receive payment if the borrower defaults, contradictory to a piggyback loan where the lender consumes all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homeowner prevent bearing the cost of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Wise homeowners can get off the hook beforehand. The law promises that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Considering it can take many years to reach the point where the principal is only 20% of the initial amount of the loan, it's important to know how your home has grown in value. After all, all of the appreciation you've acquired over time counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be following the national trends and/or your home may have gained equity before things simmered down, so even when nationwide trends indicate plummeting home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. It's an appraiser's job to know the market dynamics of their area. At Stephens Appraisals of Central Florida, we know when property values have risen or declined. We're experts at recognizing value trends in Sorrento, Lake County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often do away with the PMI with little effort. At which time, the homeowner can retain the savings from that point on.
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