Have equity in your home? Want a lower payment? An appraisal from Gill Group can help you get rid of your PMI.It's generally understood that a 20% down payment is the standard when buying a house. The lender's liability is oftentimes only the difference between the home value and the sum due on the loan, so the 20% supplies a nice buffer against the charges of foreclosure, reselling the home, and typical value fluctuations in the event a purchaser defaults. Banks were taking down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplementary plan guards the lender in case a borrower doesn't pay on the loan and the value of the home is less than the balance of the loan. PMI is costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and oftentimes isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the deficits, PMI is favorable for the lender because they obtain the money, and they receive payment if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can avoid bearing the cost of PMIThe Homeowners Protection Act of 1998 requires the lenders on most loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Keen homeowners can get off the hook ahead of time. The law promises that, upon request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. Because it can take many years to arrive at the point where the principal is only 20% of the initial loan amount, it's necessary to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over the years counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Even when nationwide trends indicate plummeting home values, realize that real estate is local. Your neighborhood might not be adopting the national trends and/or your home may have acquired equity before things settled down. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Gill Group, we know when property values have risen or declined. We're experts at determining value trends in Dexter, Stoddard County and surrounding areas. When faced with data from an appraiser, the mortgage company will generally drop the PMI with little trouble. At that time, the home owner can retain the savings from that point on.
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