Holbrook and Associates can help you remove your Private Mortgage InsuranceWhen getting a mortgage, a 20% down payment is typically the standard. Because the risk for the lender is generally only the difference between the home value and the amount outstanding on the loan, the 20% adds a nice buffer against the costs of foreclosure, reselling the home, and natural value fluctuationsin the event a purchaser defaults. Lenders were working with down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the added risk of the small down payment with Private Mortgage Insurance or PMI. This supplementary policy protects the lender in case a borrower doesn't pay on the loan and the market price of the property is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and frequently isn't even tax deductible, PMI is pricey to a borrower. Unlike a piggyback loan where the lender consumes all the costs, PMI is beneficial for the lender because they obtain the money, and they get paid if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers refrain from bearing the expense of PMI?The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Smart homeowners can get off the hook a little early. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent. It can take countless years to get to the point where the principal is just 20% of the original amount of the loan, so it's important to know how your home has increased in value. After all, every bit of appreciation you've gained over the years counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Even when nationwide trends predict falling home values, be aware that real estate is local. Your neighborhood might not be following the national trends and/or your home could have secured equity before things cooled off. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. It is an appraiser's job to keep up with the market dynamics of their area. At Holbrook and Associates, we know when property values have risen or declined. We're masters at determining value trends in Sun City West, Maricopa County and surrounding areas. Faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little trouble. At which time, the home owner can delight in the savings from that point on.
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