4Loines Real Estate Services can help you remove your Private Mortgage InsuranceA 20% down payment is usually accepted when purchasing a home. The lender's liability is often only the remainder between the home value and the amount outstanding on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and natural value changes on the chance that a purchaser doesn't pay. During the recent mortgage upturn of the last decade, it became common to see lenders commanding down payments of 10, 5 or even 0 percent. A lender is able to handle the added risk of the reduced down payment with Private Mortgage Insurance or PMI. This added plan guards the lender in case a borrower defaults on the loan and the value of the home is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI is pricey to a borrower. It's money-making for the lender because they collect the money, and they receive payment if the borrower doesn't pay, contradictory to a piggyback loan where the lender absorbs all the losses. 
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 cost of PMIWith the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Keen home owners can get off the hook a little earlier. The law promises that, at the request of the home owner, the PMI must be dropped when the principal amount equals just 80 percent. Since it can take countless years to arrive at the point where the principal is just 20% of the original amount borrowed, it's crucial to know how your home has grown in value. After all, any appreciation you've accomplished over the years counts towards removing PMI. So why pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be adhering to the national trends and/or your home might have gained equity before things cooled off, so even when nationwide trends predict declining home values, you should realize that real estate is local. The toughest thing for many home owners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to understand the market dynamics of our area. At 4Loines Real Estate Services, we're masters at analyzing value trends in Shawboro, Currituck County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will generally do away with the PMI with little effort. At that time, the home owner can retain the savings from that point on.
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