Have equity in your home? Want a lower payment? An appraisal from Piombino Associates can help you get rid of your PMI.A 20% down payment is usually accepted when purchasing a home. Since the risk for the lender is oftentimes only the difference between the home value and the sum remaining on the loan, the 20% supplies a nice cushion against the charges of foreclosure, selling the home again, and natural value changeson the chance that a borrower doesn't pay. Banks were taking down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower is unable to pay on the loan and the worth of the home is lower than the balance of the loan. PMI can be pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and generally isn't even tax deductible. It's lucrative for the lender because they collect the money, and they receive payment if the borrower defaults, separate from a piggyback loan where the lender takes in 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 buyers keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 makes the lenders on most loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law stipulates that, upon request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. So, wise homeowners can get off the hook a little earlier. It can take countless years to arrive at the point where the principal is just 20% of the original amount of the loan, so it's essential to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends predict decreasing home values, realize that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home might have acquired equity before things calmed down. The hardest 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 is an appraiser's job to recognize the market dynamics of their area. At Piombino Associates, we're experts at determining value trends in Paoli, Chester County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will often cancel the PMI with little effort. At which time, the homeowner can enjoy the savings from that point on.
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