Have equity in your home? Want a lower payment? An appraisal from Wronski Appraisal Services Inc. can help you get rid of your PMI.It's typically understood that a 20% down payment is accepted when getting a mortgage. Since the liability for the lender is often only the remainder between the home value and the sum due on the loan, the 20% supplies a nice buffer against the charges of foreclosure, selling the home again, and natural value changeson the chance that a purchaser is unable to pay. Banks were accepting down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender manage the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This supplementary policy guards the lender in case a borrower is unable to pay on the loan and the market price of the home is lower than what is owed on the loan. PMI can be costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and often isn't even tax deductible. It's beneficial for the lender because they obtain the money, and they receive payment if the borrower is unable to pay, separate from a piggyback loan where the lender consumes all the losses. 
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 expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Keen homeowners can get off the hook ahead of time. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Considering it can take many years to reach the point where the principal is only 20% of the initial loan amount, it's crucial to know how your home has grown in value. After all, all of the appreciation you've gained over the years counts towards removing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home might have acquired equity before things calmed down, so even when nationwide trends hint at declining home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Wronski Appraisal Services Inc., we're masters at analyzing value trends in Scottsdale, Maricopa 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 generally do away with the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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