Couch Appraisals, LLC. can help you remove your Private Mortgage InsuranceIt's typically known that a 20% down payment is the standard when getting a mortgage. Since the liability for the lender is generally only the remainder between the home value and the amount due on the loan, the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and natural value variationsin the event a borrower is unable to pay. During the recent mortgage upturn of the mid 2000s, it was common to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to handle the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This additional policy takes care of the lender if a borrower doesn't pay on the loan and the value of the property is less than what the borrower still owes on the loan. PMI can be pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and generally isn't even tax deductible. Opposite from a piggyback loan where the lender consumes all the deficits, PMI is advantageous for the lender because they obtain the money, and they get paid if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers keep from bearing the cost of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Acute home owners can get off the hook beforehand. The law designates that, at the request of the homeowner, the PMI must be dropped when the principal amount equals just 80 percent. Since it can take countless years to arrive at the point where the principal is just 20% of the original amount borrowed, 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 why pay it after your loan balance has dropped below the 80% mark? Despite the fact that nationwide trends forecast decreasing home values, be aware that real estate is local. Your neighborhood might not be following the national trends and/or your home may have gained equity before things settled down. The hardest thing for many homeowners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to understand the market dynamics of our area. At Couch Appraisals, LLC., we're masters at pinpointing value trends in White House, Robertson County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will generally eliminate the PMI with little effort. At that time, the homeowner can retain the savings from that point on.
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