Have equity in your home? Want a lower payment? An appraisal from DRA Appraisals, Inc can help you get rid of your PMI.A 20% down payment is typically the standard when getting a mortgage. Considering the liability for the lender is generally only the difference between the home value and the sum remaining on the loan, the 20% supplies a nice buffer against the costs of foreclosure, selling the home again, and natural value variationsin the event a purchaser is unable to pay. The market was working with 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 reduced down payment with Private Mortgage Insurance or PMI. This added plan covers the lender in case a borrower defaults on the loan and the market price of the property is lower than what is owed on the loan. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is lumped 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 advantageous for the lender because they acquire the money, and they get paid 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 homeowners can refrain from paying PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law promises that, upon request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. So, savvy home owners can get off the hook a little earlier. It can take countless years to reach the point where the principal is just 20% of the original amount borrowed, so it's important to know how your home has appreciated in value. After all, every bit of appreciation you've gained over the years counts towards abolishing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends forecast decreasing home values, understand that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home could have secured equity before things simmered down. The hardest thing for many homeowners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to understand the market dynamics of our area. At DRA Appraisals, Inc, we're experts at determining value trends in Raleigh, Wake County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will most often remove the PMI with little trouble. At which time, the home owner can delight in the savings from that point on.
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