Have equity in your home? Want a lower payment? An appraisal from Crispell Associates can help you get rid of your PMI.A 20% down payment is typically accepted when purchasing a home. The lender's liability is generally only the difference between the home value and the amount remaining on the loan, so the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and regular value changes on the chance that a borrower defaults. The market was taking down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower doesn't pay on the loan and the value of the home is lower than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and oftentimes isn't even tax deductible, PMI is pricey to a borrower. It's profitable for the lender because they acquire the money, and they receive payment if the borrower is unable to pay, contradictory to a piggyback loan where the lender absorbs all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can refrain from bearing the cost of PMIThe Homeowners Protection Act of 1998 requires the lenders on most loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law stipulates that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. So, keen home owners can get off the hook a little early. It can take many years to get to the point where the principal is only 20% of the original amount of the loan, so it's essential 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 pay it after the balance of your loan has dropped below the 80% mark? Even when nationwide trends signify declining home values, realize that real estate is local. Your neighborhood might not be following the national trends and/or your home could have acquired equity before things cooled off. The toughest thing for many homeowners to understand is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. It is an appraiser's job to understand the market dynamics of their area. At Crispell Associates, we're masters at determining value trends in STATE COLLEGE, Centre County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little anxiety. At that time, the home owner can enjoy the savings from that point on.
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