Have equity in your home? Want a lower payment? An appraisal from Angel's Appraisals, LLC can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. The lender's liability is often only the difference between the home value and the amount remaining on the loan, so the 20% provides a nice buffer against the charges of foreclosure, selling the home again, and regular value variations on the chance that a purchaser defaults. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders requiring down payments of 10, 5 or often 0 percent. How does a lender endure the increased risk of the small down payment? The solution is Private Mortgage Insurance or PMI. This added plan covers the lender in case a borrower doesn't pay on the loan and the value of the home is less than the loan balance. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible. It's advantageous for the lender because they acquire the money, and they get paid if the borrower is unable to pay, different from a piggyback loan where the lender absorbs all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home owner avoid bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law pledges that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. So, keen homeowners can get off the hook ahead of time. Since it can take countless years to arrive at the point where the principal is only 20% of the initial loan amount, it's important to know how your home has grown in value. After all, all of the appreciation you've obtained over time counts towards dismissing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be adopting the national trends and/or your home could have secured equity before things simmered down, so even when nationwide trends forecast falling home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. It's an appraiser's job to recognize the market dynamics of their area. At Angel's Appraisals, LLC, we're experts at pinpointing value trends in Virginia Beach, Virginia Beach City County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will generally remove the PMI with little trouble. At that time, the home owner can enjoy the savings from that point on.
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