EDLER APPRAISALS, LLC can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when buying a house. The lender's risk is generally only the difference between the home value and the sum due on the loan, so the 20% supplies a nice buffer against the costs of foreclosure, selling the home again, and natural value variations in the event a purchaser is unable to pay. During the recent mortgage upturn of the last decade, it was widespread to see lenders requiring down payments of 10, 5 or sometimes 0 percent. A lender is able to endure the added risk of the reduced down payment with Private Mortgage Insurance or PMI. This added policy guards the lender in case a borrower doesn't pay on the loan and the market price of the property is lower than the loan balance. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and many times isn't even tax deductible, PMI can be pricey to a borrower. It's beneficial for the lender because they secure the money, and they receive payment if the borrower defaults, opposite from a piggyback loan where the lender consumes all the damages. 
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 employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law stipulates that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. So, wise home owners can get off the hook sooner than expected. It can take many years to reach the point where the principal is only 20% of the original amount borrowed, so it's necessary to know how your home has increased in value. After all, all of the appreciation you've achieved over time counts towards abolishing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be heeding the national trends and/or your home might have secured equity before things simmered down, so even when nationwide trends predict plunging home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to know the market dynamics of our area. At EDLER APPRAISALS, LLC, we know when property values have risen or declined. We're masters at recognizing value trends in Havertown, Delaware County and surrounding areas. When faced with information from an appraiser, the mortgage company will often remove the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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