H&H Real Estate Appraisal Services LLC can help you remove your Private Mortgage InsuranceIt's widely inferred that a 20% down payment is the standard when purchasing a home. Because the risk for the lender is generally only the difference between the home value and the amount remaining on the loan, the 20% supplies a nice cushion against the costs of foreclosure, reselling the home, and natural value fluctuationson the chance that a borrower defaults. Banks were working with down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender manage the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional policy takes care of the lender in case a borrower is unable to pay on the loan and the worth of the house is less than what is owed on the loan. 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. Opposite from a piggyback loan where the lender consumes all the costs, PMI is profitable for the lender because they collect the money, and they get paid 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 homeowners can avoid bearing the expense of PMIWith the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cease the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Savvy home owners can get off the hook ahead of time. The law pledges that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Since it can take many years to get to the point where the principal is only 20% of the original amount of the loan, it's necessary to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over the years counts towards abolishing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends predict decreasing home values, understand that real estate is local. Your neighborhood may not be minding the national trends and/or your home may have acquired equity before things simmered down. 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 tough thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At H&H Real Estate Appraisal Services LLC, we're experts at pinpointing value trends in Chula Vista, San Diego County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will most often eliminate the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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