Have equity in your home? Want a lower payment? An appraisal from PSM Appraisals, LLC can help you get rid of your PMI.It's largely inferred that a 20% down payment is accepted when purchasing a home. Considering the liability for the lender is generally only the remainder between the home value and the sum due on the loan, the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and natural value changeson the chance that a borrower defaults. During the recent mortgage boom of the last decade, it was common to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to handle the additional risk of the small down payment with Private Mortgage Insurance or PMI. This supplemental policy protects the lender in the event a borrower doesn't pay on the loan and the value of the house is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and generally isn't even tax deductible, PMI can be costly to a borrower. Different from a piggyback loan where the lender absorbs all the deficits, PMI is money-making for the lender because they collect the money, and they get paid if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home buyers prevent paying PMI?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Acute homeowners can get off the hook sooner than expected. The law pledges that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. It can take many years to get to the point where the principal is just 20% of the original amount borrowed, so it's crucial to know how your home has increased in value. After all, every bit of appreciation you've obtained over time counts towards dismissing PMI. So why pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be following the national trends and/or your home could have secured equity before things cooled off, so even when nationwide trends forecast declining home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help homeowners 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 PSM Appraisals, LLC, we know when property values have risen or declined. We're masters at pinpointing value trends in Babylon, Suffolk County and surrounding areas. Faced with figures from an appraiser, the mortgage company will usually do away with the PMI with little anxiety. At which time, the home owner can retain the savings from that point on.
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