Younkin Appraisal Services, LLC (321) 720-0036 can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when purchasing a home. The lender's risk is usually only the difference between the home value and the sum due on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and regular value fluctuations in the event a borrower is unable to pay. During the recent mortgage boom of the last decade, it was customary to see lenders taking down payments of 10, 5 or often 0 percent. A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender in the event a borrower is unable to pay on the loan and the value of the home is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and often isn't even tax deductible, PMI can be pricey to a borrower. Separate from a piggyback loan where the lender consumes all the costs, PMI is money-making for the lender because they collect 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 buyers can avoid paying PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Smart home owners can get off the hook a little earlier. The law guarantees that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent. It can take countless years to reach the point where the principal is just 20% of the initial loan amount, so it's important to know how your home has appreciated in value. After all, every bit of appreciation you've acquired over time counts towards removing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Your neighborhood might not be following the national trends and/or your home may have acquired equity before things calmed down, so even when nationwide trends predict decreasing home values, you should understand that real estate is local. The difficult thing for most homeowners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to recognize the market dynamics of our area. At Younkin Appraisal Services, LLC (321) 720-0036, we know when property values have risen or declined. We're masters at identifying value trends in Palm Bay, Brevard County and surrounding areas. Faced with information from an appraiser, the mortgage company will most often drop the PMI with little trouble. At which time, the home owner can enjoy the savings from that point on.
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