KLM Appraisals can help you remove your Private Mortgage InsuranceA 20% down payment is usually accepted when purchasing a home. The lender's liability is oftentimes only the remainder between the home value and the sum outstanding on the loan, so the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and regular value fluctuations on the chance that a borrower is unable to pay. The market was accepting down payments as low as 10, 5 and often 0 percent during the mortgage boom of the mid 2000s. A lender is able to endure the added risk of the small down payment with Private Mortgage Insurance or PMI. This additional plan guards the lender in the event a borrower is unable to pay on the loan and the market price of the house is lower than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and many times isn't even tax deductible, PMI can be expensive to a borrower. Contradictory to a piggyback loan where the lender consumes all the losses, PMI is profitable for the lender because they obtain the money, and they get the money 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 refrain from bearing the expense of PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. So, keen homeowners can get off the hook sooner than expected. Because it can take many 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, every bit of appreciation you've gained over time counts towards abolishing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Your neighborhood may not be heeding the national trends and/or your home could have gained equity before things simmered down, so even when nationwide trends indicate decreasing home values, you should understand that real estate is local. A certified, 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. It's an appraiser's job to know the market dynamics of their area. At KLM Appraisals, we know when property values have risen or declined. We're masters at identifying value trends in Allegany, Cattaraugus County and surrounding areas. Faced with figures from an appraiser, the mortgage company will usually do away with the PMI with little effort. At that time, the homeowner can enjoy the savings from that point on.
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