Northern Arizona Appraisal, Inc. can help you remove your Private Mortgage InsuranceWhen getting a mortgage, a 20% down payment is typically the standard. Considering the liability for the lender is often only the difference between the home value and the sum remaining on the loan, the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and regular value changesin the event a purchaser defaults. During the recent mortgage boom of the last decade, it became common to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to endure the added risk of the low down payment with Private Mortgage Insurance or PMI. PMI covers 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. PMI is costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and frequently isn't even tax deductible. It's money-making for the lender because they secure the money, and they receive payment if the borrower doesn't pay, opposite from a piggyback loan where the lender takes in all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can home buyers avoid bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Smart homeowners can get off the hook beforehand. The law promises that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. It can take countless years to reach the point where the principal is just 20% of the initial amount of the loan, so it's crucial to know how your home has increased in value. After all, any appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% threshold? Despite the fact that nationwide trends forecast plummeting home values, be aware that real estate is local. Your neighborhood might not be heeding the national trends and/or your home might have secured equity before things simmered down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Northern Arizona Appraisal, Inc., we're masters at analyzing value trends in Phoenix, Maricopa County and surrounding areas, and we know when property values have risen or declined. 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 delight in the savings from that point on.
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