Forefront Appraisal Services can help you remove your Private Mortgage InsuranceIt's widely known that a 20% down payment is accepted when purchasing a home. The lender's liability is usually only the difference between the home value and the sum due on the loan, so the 20% provides a nice cushion against the expenses of foreclosure, reselling the home, and natural value changes in the event a purchaser defaults. The market was taking down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower defaults on the loan and the value of the house is less than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI can be costly to a borrower. Contradictory to a piggyback loan where the lender takes in all the costs, PMI is lucrative for the lender because they collect the money, and they get the money 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 can home owners keep from bearing the cost of PMI?With the implementation 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 primary loan amount. Acute homeowners can get off the hook sooner than expected. The law guarantees that, at the request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. Considering it can take many years to arrive at the point where the principal is only 20% of the original loan amount, it's essential to know how your home has appreciated in value. After all, all of the appreciation you've achieved over the years counts towards abolishing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Your neighborhood might not be following the national trends and/or your home might have acquired equity before things cooled off, so even when nationwide trends indicate plunging home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It's an appraiser's job to keep up with the market dynamics of their area. At Forefront Appraisal Services , we're experts at analyzing value trends in Greenville, Darke County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will most often drop the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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