Let Topeseun Inc. help you determine if you can eliminate your PMIIt's typically understood that a 20% down payment is common when getting a mortgage. The lender's liability is generally only the difference between the home value and the sum due on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and typical value variations on the chance that a borrower doesn't pay. During the recent mortgage upturn of the mid 2000s, it was common to see lenders commanding down payments of 10, 5 or sometimes 0 percent. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This supplemental policy takes care of the lender in case a borrower doesn't pay on the loan and the value of the property is lower than the loan balance. 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 oftentimes isn't even tax deductible. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is lucrative for the lender because they collect the money, and they receive payment if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homebuyers refrain from paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on most loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Acute homeowners can get off the hook beforehand. The law guarantees that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches just 80 percent. It can take many years to reach the point where the principal is just 20% of the original amount borrowed, so it's necessary to know how your home has grown in value. After all, any appreciation you've obtained over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home might have secured equity before things cooled off, so even when nationwide trends forecast declining home values, you should understand that real estate is local. The difficult thing for most homeowners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Topeseun Inc., we're experts at pinpointing value trends in Redan, Dekalb County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At which time, the home owner can enjoy the savings from that point on.
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