Have equity in your home? Want a lower payment? An appraisal from Country Manor can help you get rid of your PMI.A 20% down payment is usually the standard when getting a mortgage. Considering the risk for the lender is usually only the difference between the home value and the sum remaining on the loan, the 20% supplies a nice buffer against the charges of foreclosure, selling the home again, and regular value fluctuationson the chance that a purchaser defaults. Banks were accepting down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplementary plan covers the lender in case a borrower is unable to pay on the loan and the value of the house is less than the balance of the loan. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible. It's favorable for the lender because they obtain the money, and they get paid if the borrower doesn't pay, different from a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home buyer refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Wise homeowners can get off the hook beforehand. The law guarantees that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. Considering it can take many years to arrive at the point where the principal is just 20% of the original amount borrowed, it's important to know how your home has grown in value. After all, every bit of appreciation you've obtained over time counts towards abolishing PMI. So why pay it after your loan balance has dropped below the 80% mark? Despite the fact that nationwide trends predict plunging home values, realize that real estate is local. Your neighborhood may not be minding the national trends and/or your home may have secured equity before things cooled off. 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 tough thing to know. As appraisers, it's our job to know the market dynamics of our area. At Country Manor, we know when property values have risen or declined. We're experts at recognizing value trends in Medina, Medina County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often remove the PMI with little effort. At that time, the home owner can delight in the savings from that point on.
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