Stout Appraisal Services can help you remove your Private Mortgage InsuranceWhen getting a mortgage, a 20% down payment is typically the standard. Since the liability for the lender is usually only the remainder between the home value and the amount due on the loan, the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and natural value changesin the event a purchaser doesn't pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders taking down payments of 10, 5 or even 0 percent. How does a lender handle the additional risk of the small down payment? The solution is Private Mortgage Insurance or PMI. This supplementary plan protects the lender if a borrower is unable to pay on the loan and the worth of the home is lower than what is owed on the loan. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and often isn't even tax deductible. It's profitable for the lender because they secure the money, and they receive payment if the borrower doesn't pay, separate from a piggyback loan where the lender takes in all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can prevent paying PMIThe Homeowners Protection Act of 1998 makes the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Acute home owners can get off the hook a little early. The law promises that, upon request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, so it's necessary to know how your home has appreciated in value. After all, any appreciation you've acquired over the years counts towards removing 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 acquired equity before things settled down, so even when nationwide trends signify decreasing 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 goes over the 20% point, as it's a difficult thing to know. It is an appraiser's job to keep up with the market dynamics of their area. At Stout Appraisal Services, we know when property values have risen or declined. We're masters at pinpointing value trends in Dayton, Montgomery County and surrounding areas. Faced with information from an appraiser, the mortgage company will generally eliminate the PMI with little anxiety. At which time, the home owner can enjoy the savings from that point on.
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