Have equity in your home? Want a lower payment? An appraisal from Kelli Hand Appraisal Company, LLC can help you get rid of your PMI.It's widely understood that a 20% down payment is the standard when purchasing a home. Because the liability for the lender is generally only the difference between the home value and the sum due on the loan, the 20% supplies a nice buffer against the costs of foreclosure, reselling the home, and typical value fluctuationsin the event a purchaser doesn't pay. Lenders were taking down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the additional risk of the small down payment with Private Mortgage Insurance or PMI. This supplementary plan covers the lender in the event a borrower is unable to pay on the loan and the worth of the home is lower than what the borrower still owes on the loan. PMI can be pricey to a borrower in 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 advantageous for the lender because they secure the money, and they get the money if the borrower is unable to pay, contradictory to a piggyback loan where the lender absorbs 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 a home buyer keep from bearing the expense of PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Wise home owners can get off the hook beforehand. The law stipulates 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 get to the point where the principal is only 20% of the initial amount borrowed, so it's important to know how your home has increased in value. After all, any appreciation you've gained over the years counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Even when nationwide trends hint at plummeting home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home may have gained equity before things settled down. The toughest thing for most home owners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Kelli Hand Appraisal Company, LLC, we know when property values have risen or declined. We're masters at pinpointing value trends in Clever, Christian County and surrounding areas. When faced with information from an appraiser, the mortgage company will most often remove the PMI with little trouble. At which time, the homeowner can retain the savings from that point on.
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