Have equity in your home? Want a lower payment? An appraisal from K.G.Hill Appraisals can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. The lender's liability is often only the remainder between the home value and the sum due on the loan, so the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and natural value variations in the event a purchaser defaults. During the recent mortgage boom of the last decade, it became customary to see lenders taking down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the increased risk of the small down payment with Private Mortgage Insurance or PMI. This added plan guards the lender in case a borrower defaults on the loan and the value of the home is lower than what is owed on the loan. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and often isn't even tax deductible. Contradictory to a piggyback loan where the lender consumes all the costs, PMI is beneficial for the lender because they acquire the money, and they receive payment if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homeowners can keep from bearing the expense of PMIThe 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 initial loan amount. Acute home owners can get off the hook a little earlier. The law promises that, at the request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. Considering it can take countless years to get to the point where the principal is only 20% of the original amount borrowed, it's important to know how your home has grown in value. After all, any appreciation you've acquired over time counts towards removing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Your neighborhood might not be minding the national trends and/or your home could have secured equity before things simmered down, so even when nationwide trends hint at declining home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. It's an appraiser's job to know the market dynamics of their area. At K.G.Hill Appraisals, we know when property values have risen or declined. We're experts at identifying value trends in Fate, Rockwall County and surrounding areas. Faced with figures from an appraiser, the mortgage company will usually cancel the PMI with little effort. At which time, the home owner can relish the savings from that point on.
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