Di Cicco & Associates can help you remove your Private Mortgage InsuranceIt's widely known that a 20% down payment is the standard when getting a mortgage. Since the risk for the lender is oftentimes only the difference between the home value and the sum due on the loan, the 20% supplies a nice cushion against the expenses of foreclosure, selling the home again, and natural value variationsin the event a purchaser doesn't pay. During the recent mortgage upturn of the mid 2000s, it became widespread to see lenders commanding down payments of 10, 5 or often 0 percent. 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 case a borrower is unable to pay on the loan and the market price of the property is lower than the loan balance. PMI is pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and frequently isn't even tax deductible. It's beneficial for the lender because they obtain the money, and they get paid if the borrower is unable to pay, contradictory to 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 can home buyers keep from bearing the expense of PMI?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law designates that, at the request of the homeowner, the PMI must be dropped when the principal amount equals just 80 percent. So, savvy home owners can get off the hook ahead of time. Considering it can take many years to reach the point where the principal is just 20% of the original loan amount, it's important to know how your home has appreciated in value. After all, any appreciation you've gained over time counts towards removing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Your neighborhood might not be reflecting the national trends and/or your home could have gained equity before things simmered down, so even when nationwide trends indicate decreasing home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above 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 Di Cicco & Associates, we're masters at identifying value trends in Palm Beach Garden, Santa Rosa 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 often drop the PMI with little anxiety. At that time, the home owner can enjoy the savings from that point on.
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