Have equity in your home? Want a lower payment? An appraisal from Advantage Appraisal Service Inc can help you get rid of your PMI.When buying a house, a 20% down payment is usually the standard. Considering the liability for the lender is oftentimes only the remainder between the home value and the amount remaining on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, reselling the home, and natural value variationson the chance that a purchaser doesn't pay. Lenders were working with down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. How does a lender endure the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower is unable to pay on the loan and the value of the property is less than the loan balance. PMI can be expensive to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and oftentimes isn't even tax deductible. It's profitable for the lender because they acquire the money, and they get paid if the borrower doesn't pay, contradictory to a piggyback loan where the lender consumes all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home buyers refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Wise home owners can get off the hook a little earlier. The law guarantees that, upon request of the home owner, the PMI must be released when the principal amount equals only 80 percent. Because it can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, it's necessary to know how your home has increased in value. After all, any appreciation you've gained over the years counts towards removing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Even when nationwide trends predict plunging home values, be aware that real estate is local. Your neighborhood might not be following the national trends and/or your home may have acquired equity before things cooled off. The difficult thing for almost all home owners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to understand the market dynamics of our area. At Advantage Appraisal Service Inc, we're experts at recognizing value trends in Chino, San Bernardino County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will generally drop the PMI with little anxiety. At that time, the homeowner can relish the savings from that point on.
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