Have equity in your home? Want a lower payment? An appraisal from Daily Appraisal can help you get rid of your PMI.A 20% down payment is usually accepted when getting a mortgage. Considering the liability for the lender is oftentimes only the remainder between the home value and the amount remaining on the loan, the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and natural value fluctuationson the chance that a purchaser is unable to pay. During the recent mortgage upturn of the mid 2000s, it became widespread to see lenders taking down payments of 10, 5 or often 0 percent. A lender is able to manage the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in case a borrower defaults on the loan and the value of the property is less than what is owed on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and oftentimes isn't even tax deductible. It's favorable for the lender because they acquire the money, and they get the money if the borrower defaults, contradictory to a piggyback loan where the lender absorbs all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a buyer prevent paying PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Keen home owners can get off the hook a little earlier. The law guarantees that, at the request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. It can take countless years to arrive at the point where the principal is just 20% of the original amount borrowed, so it's necessary to know how your home has grown in value. After all, every bit of appreciation you've gained over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Even when nationwide trends forecast plummeting home values, understand that real estate is local. Your neighborhood may not be following the national trends and/or your home could have gained equity before things calmed down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It is an appraiser's job to recognize the market dynamics of their area. At Daily Appraisal, we're experts at pinpointing value trends in Laurel, Prince Georges County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will often 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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