ASAP Appraisal Group can help you remove your Private Mortgage Insurance It's largely understood that a 20% down payment is common when buying a house. The lender's liability is often only the remainder between the home value and the balance due on the loan, so the 20% provides a nice cushion against the costs of foreclosure, reselling the home, and regular value fluctuations in the event a purchaser defaults. Lenders were taking down payments dropping to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender handle the increased risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This supplementary policy protects the lender in the event a borrower is unable to pay on the loan and the value of the property is lower than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible, PMI is costly to a borrower. Different from a piggyback loan where the lender consumes all the costs, PMI is money-making for the lender because they obtain the money, and they get the money if the borrower defaults. Did you have less than 20% to put down on your mortgage? Contact ASAP Appraisal Group today at 863-698-0009. You may be able to cancel your Private Mortgage Insurance payment. How can home buyers refrain from paying PMI? The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Savvy homeowners can get off the hook a little earlier. The law promises that, upon request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. It can take several years to reach the point where the principal is only 80% of the original amount of the loan, so it's crucial to know how your Florida home has grown in value. After all, every bit of appreciation you've acquired over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends signify decreasing home values, understand that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home may have gained equity before things declined. The difficult thing for many consumers to figure out is just when their home's equity goes over the 20% point. A certified, Florida licensed real estate appraiser can surely help. Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job! At ASAP Appraisal Group, we know when property values have risen or declined. We're experts at pinpointing value trends in Lakeland, Polk County, and surrounding areas. Faced with figures from an appraiser, the mortgage company will often remove the PMI with little trouble. At that time, the homeowner can retain the savings from that point on. The savings from getting rid of your PMI pays for the appraisal in a matter of months. Nobody is more qualified than ASAP Appraisal Group when it comes to appreciating values in Lakeland and Polk County. Contact us today. Want to learn more about PMI and the Homeowners Protection Act? Click this link: Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year

Real Estate Appraiser serving Central Florida, which includes Polk, Orange, Hillsborough, Osceola, Pasco, Pinellas and Highlands counties. Types of appraisals include: FHA, ERC, Land, Manufactured Home, Condo, Multi-Acre, Difficult/Complex and REO Appraisals.

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