Have equity in your home? Want a lower payment? An appraisal from Furr Appraisal Service can help you get rid of your PMI.A 20% down payment is usually accepted when purchasing a home. The lender's risk is oftentimes only the difference between the home value and the amount outstanding on the loan, so the 20% adds a nice cushion against the expenses of foreclosure, selling the home again, and typical value fluctuations in the event a borrower is unable to pay. The market was taking down payments as low as 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. How does a lender manage the increased risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This added plan guards the lender if a borrower doesn't pay on the loan and the value of the house is less than the balance of the loan. PMI is 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 collect the money, and they get paid if the borrower is unable to pay, separate from a piggyback loan where the lender takes in all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer keep from paying PMI?With the employment 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 primary loan amount. The law guarantees that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. So, wise homeowners can get off the hook ahead of time. Considering it can take countless years to reach the point where the principal is only 20% of the original amount borrowed, it's important to know how your home has appreciated in value. After all, every bit of appreciation you've obtained over time counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Even when nationwide trends forecast plunging home values, realize that real estate is local. Your neighborhood may not be following the national trends and/or your home may have secured equity before things settled down. The hardest thing for many home owners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to recognize the market dynamics of our area. At Furr Appraisal Service, we know when property values have risen or declined. We're masters at pinpointing value trends in Camden, Benton County and surrounding areas. When faced with data from an appraiser, the mortgage company will generally remove the PMI with little trouble. At that time, the homeowner can retain the savings from that point on.
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