Let Kunick Appraisals help you discover if you can cancel your PMIIt's largely understood that a 20% down payment is common when purchasing a home. Considering the liability for the lender is generally only the remainder between the home value and the sum due on the loan, the 20% supplies a nice cushion against the charges of foreclosure, selling the home again, and typical value changesin the event a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to endure the added risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender in case a borrower doesn't pay on the loan and the worth of the home is lower than what the borrower still owes on the loan. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and often isn't even tax deductible. It's lucrative for the lender because they obtain the money, and they get paid if the borrower defaults, separate from a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can avoid paying PMIWith 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 reaches 78 percent of the beginning loan amount. The law designates that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, smart homeowners can get off the hook a little earlier. Considering it can take many years to get to the point where the principal is just 20% of the original 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 pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be heeding the national trends and/or your home could have gained equity before things calmed down, so even when nationwide trends predict plunging home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Kunick Appraisals, we know when property values have risen or declined. We're masters at pinpointing value trends in Bismarck, Burleigh County and surrounding areas. When faced with information from an appraiser, the mortgage company will often remove the PMI with little trouble. At that time, the homeowner can enjoy the savings from that point on.
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