Have equity in your home? Want a lower payment? An appraisal from Maria Hopkins Associates can help you get rid of your PMI.It's widely understood that a 20% down payment is accepted when getting a mortgage. The lender's liability is generally only the difference between the home value and the sum remaining on the loan, so the 20% supplies a nice cushion against the charges of foreclosure, reselling the home, and typical value variations in the event a borrower defaults. The market was taking down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to endure the increased risk of the small down payment with Private Mortgage Insurance or PMI. This added plan protects the lender if a borrower is unable to pay on the loan and the worth of the house is lower than what is owed on the loan. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and frequently isn't even tax deductible. It's money-making for the lender because they secure the money, and they get paid if the borrower is unable to pay, contradictory to a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can refrain from paying PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law guarantees that, at the request of the home owner, the PMI must be dropped when the principal amount equals just 80 percent. So, wise homeowners can get off the hook a little early. Since it can take countless years to get to the point where the principal is only 20% of the original amount of the loan, it's crucial to know how your home has increased in value. After all, any appreciation you've obtained over time counts towards abolishing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be heeding the national trends and/or your home could have gained equity before things settled down, so even when nationwide trends signify declining home values, you should understand that real estate is local. The difficult thing for most home owners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to recognize the market dynamics of their area. At Maria Hopkins Associates, we know when property values have risen or declined. We're masters at recognizing value trends in Spencer, Worcester County and surrounding areas. When faced with data from an appraiser, the mortgage company will usually drop the PMI with little trouble. At that time, the homeowner can enjoy the savings from that point on.
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