Have equity in your home? Want a lower payment? An appraisal from AMG Appraisal, LLC can help you get rid of your PMI.A 20% down payment is usually the standard when getting a mortgage. Since the liability for the lender is often only the difference between the home value and the sum remaining on the loan, the 20% provides a nice cushion against the costs of foreclosure, selling the home again, and typical value changesin the event a purchaser is unable to pay. During the recent mortgage boom of the last decade, it became customary to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to endure the additional risk of the small down payment with Private Mortgage Insurance or PMI. This supplementary policy takes care of 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 is pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and many times isn't even tax deductible. Separate from a piggyback loan where the lender absorbs all the losses, PMI is profitable for the lender because they obtain the money, and they get paid 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 a home owner refrain from bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Acute home owners can get off the hook a little early. The law guarantees that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. It can take many years to get to the point where the principal is only 20% of the initial loan amount, so it's important to know how your home has grown in value. After all, any appreciation you've obtained over the years counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends predict plummeting home values, realize that real estate is local. Your neighborhood may not be following the national trends and/or your home may have acquired equity before things calmed 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 tough thing to know. It's an appraiser's job to understand the market dynamics of their area. At AMG Appraisal, LLC, we're experts at identifying value trends in Otto, Macon 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 remove the PMI with little effort. At which time, the home owner can retain the savings from that point on.
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