Abney Valuation Group can help you remove your Private Mortgage InsuranceA 20% down payment is typically the standard when getting a mortgage. The lender's liability is generally only the difference between the home value and the amount outstanding on the loan, so the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and typical value fluctuations in the event a purchaser defaults. During the recent mortgage upturn of the mid 2000s, it became widespread to see lenders taking down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplementary policy takes care of the lender in case a borrower is unable to pay on the loan and the value of the house is less than what the borrower still owes on the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible. Opposite from a piggyback loan where the lender takes in all the costs, PMI is profitable for the lender because they obtain the money, and they receive payment 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 homebuyers prevent bearing the expense of PMI?With the employment 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 initial loan amount. The law pledges that, upon request of the home owner, the PMI must be released when the principal amount equals just 80 percent. So, savvy home owners can get off the hook ahead of time. Because it can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, it's important to know how your home has increased in value. After all, any appreciation you've accomplished over time counts towards dismissing PMI. So why should you pay it after your loan balance has dropped below the 80% threshold? Even when nationwide trends forecast falling home values, understand that real estate is local. Your neighborhood might not be heeding the national trends and/or your home might have secured equity before things cooled off. The toughest thing for most homeowners to understand is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. It's an appraiser's job to understand the market dynamics of their area. At Abney Valuation Group, we know when property values have risen or declined. We're masters at pinpointing value trends in Marshall, Harrison County and surrounding areas. When 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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