Let Value Vision Appraisals help you determine if you can cancel your PMIIt's largely inferred that a 20% down payment is common when getting a mortgage. Since the liability for the lender is generally only the remainder between the home value and the sum outstanding on the loan, the 20% supplies a nice buffer against the costs of foreclosure, selling the home again, and regular value changeson the chance that a purchaser is unable to pay. Banks were accepting down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the added risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower is unable to pay on the loan and the value of the home is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and often isn't even tax deductible, PMI can be expensive to a borrower. It's money-making for the lender because they acquire the money, and they receive payment if the borrower doesn't pay, separate from a piggyback loan where the lender absorbs all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can avoid bearing the expense of PMIThe Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Savvy home owners can get off the hook a little early. The law designates that, upon request of the home owner, the PMI must be released when the principal amount equals just 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the initial amount of the loan, so it's essential to know how your home has increased in value. After all, any appreciation you've accomplished over time counts towards dismissing PMI. So why should you pay it after your loan balance has dropped below the 80% threshold? Even when nationwide trends forecast decreasing home values, understand that real estate is local. Your neighborhood might not be minding the national trends and/or your home could have acquired equity before things simmered down. An accredited, 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. As appraisers, it's our job to know the market dynamics of our area. At Value Vision Appraisals, we know when property values have risen or declined. We're experts at determining value trends in San Diego, Orange County and surrounding areas. When faced with data from an appraiser, the mortgage company will most often do away with the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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