Have equity in your home? Want a lower payment? An appraisal from PSM Appraisals, LLC can help you get rid of your PMI.A 20% down payment is usually the standard when purchasing a home. The lender's risk is oftentimes only the difference between the home value and the amount remaining on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and regular value variations on the chance that a borrower is unable to pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to handle the added risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplementary plan guards the lender if a borrower is unable to pay on the loan and the market price of the property is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and oftentimes isn't even tax deductible, PMI can be expensive to a borrower. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is beneficial for the lender because they obtain 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 homeowners can keep from bearing the cost of PMIWith the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law guarantees that, at the request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. So, wise homeowners can get off the hook a little early. Since it can take many years to arrive at the point where the principal is just 20% of the original amount of the loan, it's important to know how your home has increased in value. After all, all of the appreciation you've obtained over the years counts towards removing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Even when nationwide trends hint at plummeting home values, realize that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home may have acquired equity before things simmered down. The hardest thing for most 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. It is an appraiser's job to keep up with the market dynamics of their area. At PSM Appraisals, LLC, we're experts at identifying 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 generally do away with the PMI with little anxiety. At that time, the home owner can delight in the savings from that point on.
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