Have equity in your home? Want a lower payment? An appraisal from MC Appraisals LLC can help you get rid of your PMI.It's generally understood that a 20% down payment is accepted when getting a mortgage. The lender's risk is generally only the remainder between the home value and the amount outstanding on the loan, so the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and natural value changes in the event a borrower defaults. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders taking down payments of 10, 5 or even 0 percent. How does a lender handle the additional risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This additional plan protects the lender in the event a borrower doesn't pay on the loan and the worth of the house is less than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI is costly to a borrower. Unlike a piggyback loan where the lender absorbs all the deficits, PMI is advantageous for the lender because they collect 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 home owners can refrain from bearing the cost of PMIWith the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law designates that, upon request of the home owner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, wise home owners can get off the hook a little earlier. It can take countless years to arrive at the point where the principal is just 20% of the initial amount of the loan, so it's essential to know how your home has appreciated in value. After all, any appreciation you've acquired over the years counts towards removing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Despite the fact that nationwide trends forecast falling home values, be aware that real estate is local. Your neighborhood may not be adopting the national trends and/or your home could have secured equity before things settled down. 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 hard thing to know. It is an appraiser's job to keep up with the market dynamics of their area. At MC Appraisals LLC, we're experts at analyzing value trends in Silverton, Marion 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 often remove the PMI with little trouble. At that time, the home owner can delight in the savings from that point on.
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