Have equity in your home? Want a lower payment? An appraisal from Minks Appraisals can help you get rid of your PMI.It's widely known that a 20% down payment is common when buying a house. Considering the liability for the lender is oftentimes only the difference between the home value and the amount due on the loan, the 20% supplies a nice cushion against the charges of foreclosure, reselling the home, and regular value changesin the event a borrower defaults. Banks were working with down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplementary policy guards the lender in case a borrower doesn't pay on the loan and the value of the property is less than the balance of the loan. PMI can be pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible. It's money-making for the lender because they collect the money, and they receive payment if the borrower defaults, separate from a piggyback loan where the lender takes in 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 homeowner prevent bearing the expense of PMI?The Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Savvy homeowners can get off the hook ahead of time. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Since it can take many years to reach the point where the principal is just 20% of the original amount borrowed, it's crucial to know how your home has increased in value. After all, all of the appreciation you've accomplished over the years counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be reflecting the national trends and/or your home might have secured equity before things simmered down, so even when nationwide trends predict falling home values, you should realize that real estate is local. The toughest thing for many homeowners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to know the market dynamics of our area. At Minks Appraisals, we're masters at determining value trends in Poteau, Le Flore County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will usually drop the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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