Ridder Appraisal Service, LLC can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when buying a house. Since the liability for the lender is often only the remainder between the home value and the sum remaining on the loan, the 20% provides a nice cushion against the costs of foreclosure, reselling the home, and regular value fluctuationsin the event a borrower defaults. During the recent mortgage boom of the last decade, it was customary to see lenders taking down payments of 10, 5 or sometimes 0 percent. A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI guards the lender in case a borrower defaults on the loan and the value of the property is lower than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and often isn't even tax deductible, PMI can be expensive to a borrower. It's beneficial for the lender because they obtain the money, and they get the money if the borrower defaults, opposite from a piggyback loan where the lender takes in all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home owner prevent bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law states that, at the request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. So, acute homeowners can get off the hook a little earlier. Since it can take countless years to arrive at the point where the principal is only 20% of the initial amount of the loan, it's important to know how your home has grown in value. After all, all of the appreciation you've acquired over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be reflecting the national trends and/or your home may have acquired equity before things calmed down, so even when nationwide trends signify decreasing home values, you should realize that real estate is local. The difficult thing for many home owners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to keep up with the market dynamics of their area. At Ridder Appraisal Service, LLC, we know when property values have risen or declined. We're experts at identifying value trends in Nellysford, Nelson County and surrounding areas. When faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little anxiety. At that time, the home owner can retain the savings from that point on.
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