Perry Associates LLC 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% adds a nice buffer against the costs of foreclosure, reselling the home, and typical value fluctuationson the chance that a purchaser is unable to pay. During the recent mortgage boom of the last decade, it was common to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to endure the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This added policy protects the lender if a borrower defaults on the loan and the value of the house is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be costly to a borrower. Contradictory to a piggyback loan where the lender consumes all the costs, PMI is profitable for the lender because they obtain the money, and they receive payment if the borrower is unable to pay. 
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 prevent bearing the cost of PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Wise home owners can get off the hook ahead of time. The law promises that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. Because it can take countless years to reach the point where the principal is just 20% of the original loan amount, it's important to know how your home has grown in value. After all, all of the appreciation you've accomplished over time counts towards removing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Even when nationwide trends forecast plummeting home values, be aware that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home might have gained equity before things simmered down. A certified, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a hard thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Perry Associates LLC, we're experts at determining value trends in Meridian, Ada 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 eliminate the PMI with little anxiety. At that time, the homeowner can relish the savings from that point on.
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