Have equity in your home? Want a lower payment? An appraisal from DLC Appraisal Services, LLC can help you get rid of your PMI.When purchasing a home, a 20% down payment is typically the standard. The lender's risk is often only the difference between the home value and the sum outstanding on the loan, so the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and typical value variations in the event a borrower is unable to pay. The market was taking down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to handle the added risk of the small down payment with Private Mortgage Insurance or PMI. This supplemental plan protects the lender in the event a borrower defaults on the loan and the worth of the home is lower than what the borrower still owes on the loan. PMI can be costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and generally isn't even tax deductible. Separate from a piggyback loan where the lender absorbs all the costs, PMI is favorable for the lender because they acquire the money, and they get paid if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer keep from bearing the cost of PMI?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Acute homeowners can get off the hook beforehand. The law stipulates that, at the request of the home owner, the PMI must be abandoned when the principal amount equals just 80 percent. Since it can take countless years to reach the point where the principal is only 20% of the initial amount borrowed, it's essential to know how your home has grown in value. After all, any appreciation you've acquired over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% threshold? Your neighborhood may not be following the national trends and/or your home may have gained equity before things cooled off, so even when nationwide trends signify falling home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. As appraisers, it's our job to know the market dynamics of our area. At DLC Appraisal Services, LLC, we're experts at determining value trends in northern Louisiana, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At that time, the homeowner can enjoy the savings from that point on.
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