Have equity in your home? Want a lower payment? An appraisal from Edelen Appraisals, LLC can help you get rid of your PMI.A 20% down payment is typically the standard when buying a house. Because the liability for the lender is often only the remainder between the home value and the sum due on the loan, the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and typical value fluctuationson the chance that a borrower defaults. The market was accepting down payments down to 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to manage the added risk of the small down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower defaults on the loan and the value of the house is less than the loan balance. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and oftentimes isn't even tax deductible. It's lucrative for the lender because they obtain the money, and they receive payment if the borrower doesn't pay, contradictory to a piggyback loan where the lender consumes all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homeowner prevent bearing the expense of PMI?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Savvy homeowners can get off the hook a little earlier. The law promises that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals only 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 increased in value. After all, every bit of appreciation you've obtained over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Your neighborhood may not be minding the national trends and/or your home could have gained equity before things settled down, so even when nationwide trends predict falling home values, you should understand that real estate is local. The difficult thing for many homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to recognize the market dynamics of our area. At Edelen Appraisals, LLC, we're masters at recognizing value trends in Louisville, Jefferson 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 usually do away with the PMI with little anxiety. At that time, the home owner can delight in the savings from that point on.
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