Have equity in your home? Want a lower payment? An appraisal from Camacho Appraisals LLC can help you get rid of your PMI.It's generally inferred that a 20% down payment is accepted when getting a mortgage. Because the risk for the lender is usually only the remainder between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the charges of foreclosure, selling the home again, and natural value variationson the chance that a borrower defaults. During the recent mortgage boom of the last decade, it was common to see lenders commanding down payments of 10, 5 or even 0 percent. A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower doesn't pay on the loan and the value of the property is lower than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be pricey to a borrower. It's profitable for the lender because they collect the money, and they get the money if the borrower is unable to pay, opposite from a piggyback loan where the lender takes in 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 homeowners keep from paying PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Savvy home owners can get off the hook a little early. The law stipulates that, at the request of the home owner, the PMI must be released when the principal amount equals just 80 percent. Considering it can take countless 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 increased in value. After all, all of the appreciation you've achieved over the years counts towards abolishing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Despite the fact that nationwide trends forecast declining home values, be aware that real estate is local. Your neighborhood may not be adopting the national trends and/or your home might have secured equity before things settled down. The hardest thing for most homeowners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to understand the market dynamics of our area. At Camacho Appraisals LLC, we know when property values have risen or declined. We're masters at recognizing value trends in Wyckoff, Bergen County and surrounding areas. When faced with figures from an appraiser, the mortgage company will most often remove the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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