Have equity in your home? Want a lower payment? An appraisal from ValPro Appraisal LLC can help you get rid of your PMI.A 20% down payment is usually the standard when buying a house. The lender's risk is generally only the remainder between the home value and the amount remaining on the loan, so the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and natural value changes on the chance that a borrower is unable to pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender manage the increased risk of the small down payment? The solution is Private Mortgage Insurance or PMI. This additional plan covers the lender if a borrower doesn't pay on the loan and the market price of the property is lower than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage 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 profitable for the lender because they secure the money, and they get the money 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 prevent bearing the expense of PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law pledges that, at the request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. So, savvy homeowners can get off the hook sooner than expected. Considering it can take many years to reach the point where the principal is just 20% of the initial amount borrowed, it's crucial to know how your home has grown in value. After all, all of the appreciation you've acquired over the years counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Despite the fact that nationwide trends signify falling home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home might have secured equity before things cooled off. The hardest thing for almost all homeowners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. As appraisers, it's our job to know the market dynamics of our area. At ValPro Appraisal LLC, we're masters at pinpointing value trends in Cape Coral, Lee 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 cancel the PMI with little effort. At which time, the home owner can relish the savings from that point on.
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