Let Deer Creek Appraisals help you determine if you can eliminate your PMIA 20% down payment is typically the standard when getting a mortgage. The lender's liability is often only the difference between the home value and the sum remaining on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and typical value fluctuations on the chance that a borrower defaults. During the recent mortgage upturn of the last decade, it was widespread to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to endure the additional risk of the small down payment with Private Mortgage Insurance or PMI. This supplemental plan covers the lender in case a borrower defaults on the loan and the worth of the house is lower than the balance of the loan. PMI can be costly to a borrower in that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and often isn't even tax deductible. It's money-making for the lender because they secure the money, and they get the money if the borrower is unable to pay, contradictory to a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home buyers keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Smart homeowners can get off the hook beforehand. The law promises that, upon request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. Because it can take many years to arrive at the point where the principal is just 20% of the initial amount of the loan, it's important to know how your home has increased in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends hint at plummeting home values, understand that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home might have secured equity before things simmered down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity rises above 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 Deer Creek Appraisals, we know when property values have risen or declined. We're experts at pinpointing value trends in Denver, Jefferson County and surrounding areas. Faced with information from an appraiser, the mortgage company will generally drop the PMI with little anxiety. At which time, the homeowner can delight in the savings from that point on.
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