Wronski Appraisal Services Inc. can help you remove your Private Mortgage InsuranceIt's largely known that a 20% down payment is common when purchasing a home. Because the liability for the lender is usually only the remainder between the home value and the sum due on the loan, the 20% supplies a nice cushion against the expenses of foreclosure, selling the home again, and natural value fluctuationsin the event a purchaser doesn't pay. During the recent mortgage boom of the last decade, it became common to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender endure the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI protects the lender if a borrower doesn't pay on the loan and the market price of the home is lower than the loan balance. Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and many times isn't even tax deductible, PMI can be pricey to a borrower. Opposite from a piggyback loan where the lender takes in all the deficits, PMI is beneficial for the lender because they acquire the money, and they get the money 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 can homeowners prevent bearing the cost of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law states that, upon request of the home owner, the PMI must be released when the principal amount equals just 80 percent. So, acute homeowners can get off the hook sooner than expected. Since it can take countless years to arrive at the point where the principal is only 20% of the initial amount borrowed, it's necessary to know how your home has increased in value. After all, every bit of appreciation you've gained over the years counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Your neighborhood might not be reflecting the national trends and/or your home might have acquired equity before things cooled off, so even when nationwide trends signify plummeting home values, you should realize that real estate is local. An accredited, licensed real estate appraiser can help homeowners 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 know the market dynamics of our area. At Wronski Appraisal Services Inc., we know when property values have risen or declined. We're experts at analyzing value trends in Scottsdale, Maricopa County and surrounding areas. When faced with data from an appraiser, the mortgage company will often do away with the PMI with little anxiety. At that time, the homeowner can relish the savings from that point on.
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