Have equity in your home? Want a lower payment? An appraisal from Academy Appraisals, Ltd. can help you get rid of your PMI.A 20% down payment is typically the standard when buying a house. Because the risk for the lender is usually only the remainder between the home value and the sum outstanding on the loan, the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and natural value variationson the chance that a purchaser is unable to pay. The market was accepting down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplemental policy takes care of the lender in the event a borrower is unable to pay on the loan and the worth of the home is lower than what is owed on the loan. PMI can be pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times isn't even tax deductible. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is lucrative for the lender because they secure the money, and they get paid 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 homebuyers can prevent bearing the cost of PMIWith the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cease the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Savvy homeowners can get off the hook a little earlier. The law stipulates that, at the request of the homeowner, 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 just 20% of the original amount borrowed, so it's crucial to know how your home has increased in value. After all, every bit of appreciation you've obtained over time counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% mark? Your neighborhood might not be following the national trends and/or your home could have acquired equity before things simmered down, so even when nationwide trends predict decreasing home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. As appraisers, it's our job to know the market dynamics of our area. At Academy Appraisals, Ltd. , we know when property values have risen or declined. We're masters at pinpointing value trends in Colorado Springs, El Paso County and surrounding areas. When faced with information from an appraiser, the mortgage company will often drop the PMI with little anxiety. At which time, the homeowner can delight in the savings from that point on.
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