Let WT Residential Appraisal, LLC help you discover if you can cancel your PMIA 20% down payment is usually the standard when buying a house. Since the risk for the lender is oftentimes only the difference between the home value and the sum outstanding on the loan, the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and typical value variationsin the event a borrower doesn't pay. During the recent mortgage upturn of the last decade, it became common to see lenders commanding down payments of 10, 5 or sometimes 0 percent. How does a lender handle the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This added plan covers the lender if a borrower defaults on the loan and the market price of the house is lower than the loan balance. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and often isn't even tax deductible, PMI can be pricey to a borrower. Different from a piggyback loan where the lender absorbs all the damages, PMI is beneficial for the lender because they acquire the money, and they receive payment if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Keen homeowners can get off the hook sooner than expected. The law designates that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. It can take countless years to get to the point where the principal is only 20% of the original loan amount, so it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've obtained over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be following the national trends and/or your home might have secured equity before things calmed down, so even when nationwide trends signify plunging home values, you should realize that real estate is local. The toughest thing for many homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to recognize the market dynamics of our area. At WT Residential Appraisal, LLC, we're experts at analyzing value trends in Mansfield, Lane 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 anxiety. At that time, the homeowner can relish the savings from that point on.
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