Have equity in your home? Want a lower payment? An appraisal from PSM Appraisals, LLC can help you get rid of your PMI.It's widely understood that a 20% down payment is common when getting a mortgage. The lender's liability is usually only the difference between the home value and the amount remaining on the loan, so the 20% supplies a nice buffer against the charges of foreclosure, selling the home again, and regular value variations 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 commanding down payments of 10, 5 or often 0 percent. A lender is able to handle the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower doesn't pay on the loan and the value of the property is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and oftentimes isn't even tax deductible, PMI can be costly to a borrower. It's lucrative for the lender because they obtain the money, and they get the money if the borrower defaults, separate from a piggyback loan where the lender takes in 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 home owners refrain from bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically cease the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Acute home owners can get off the hook sooner than expected. The law pledges that, at the request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent. Because it can take many years to get to the point where the principal is just 20% of the original amount borrowed, it's necessary to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over the years counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Your neighborhood might not be heeding the national trends and/or your home could have secured equity before things cooled off, so even when nationwide trends hint at plummeting home values, you should realize that real estate is local. The toughest thing for most homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to know the market dynamics of their area. At PSM Appraisals, LLC, we're experts at analyzing value trends in Babylon, Suffolk County and surrounding areas, and we know when property values have risen or declined. Faced with information from an appraiser, the mortgage company will most often remove the PMI with little trouble. At that time, the homeowner can delight in the savings from that point on.
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