Let Allatoona Appraisal help you learn if you can eliminate your PMI

It's largely inferred that a 20% down payment is accepted when buying a house. The lender's liability is oftentimes only the difference between the home value and the amount remaining on the loan, so the 20% supplies a nice buffer against the charges of foreclosure, selling the home again, and typical value fluctuations on the chance that a borrower doesn't pay.

Lenders were taking 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 manage the added risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI covers the lender in the event a borrower doesn't pay on the loan and the value of the house is less than the balance of the loan.

Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI is costly to a borrower. It's money-making for the lender because they secure the money, and they get the money if the borrower doesn't pay, separate from a piggyback loan where the lender takes in all the deficits.


The money you keep from dropping your PMI pays for the appraisal in no time. Allatoona Appraisal has years of experience with value trends in the city of Kennesaw and Cobb County. Contact us today.

How buyers can keep from bearing the cost of PMI

The Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law promises that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, acute home owners can get off the hook sooner than expected.

Since it can take several years to get to the point where the principal is just 80% of the original amount of the loan, it's necessary to know how your Georgia home has grown in value. After all, any appreciation you've obtained over time counts towards dismissing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood might not conform to national trends and/or your home could have gained equity before things declined. So even when nationwide trends predict decreasing home values, you should understand that real estate is local.

The difficult thing for many consumers to figure out is just when their home's equity rises above the 20% point. An accredited, Georgia licensed real estate appraiser can definitely help. It is an appraiser's job to recognize the market dynamics of their area. At Allatoona Appraisal, we're masters at pinpointing value trends in Kennesaw, Cobb County, and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will often do away with the PMI with little trouble. At that time, the homeowner can enjoy the savings from that point on.


The savings from dropping the PMI required when you got your mortgage pays for the appraisal in no time. Allatoona Appraisal is in the business of tracking real estate value trends in Kennesaw and Cobb 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

 


Allatoona Appraisal 1301 Shiloh Rd NW Suite 1710 Kennesaw, GA 30144
Phone:

Contact Us | Partial Client List | How to Prepare | Estate Appraisals | Divorce | Expert Witness Testimony | Download Adobe Acrobat | Tell a Friend | Real Estate News | FAQ | Glossary of Terms | About PMI | Why get an Appraisal | Services | Allatoona Appraisal | Site Map | Residential Investment | Our Service Area | Appraiser licensing | MAI designation | Three approaches to value | SRA designation | Appraiser jargon | Pre-Listing Appraisals | Relocation Appraisal | Date of Death Valuations | Foreclosure/REO Appraisal | Partial Interest Valuation | Appraisal Reviews

Copyright © 2014 Allatoona Appraisal
Portions Copyright © 2014 a la mode, inc.
Another XSite by a la mode, inc. | Admin LoginTerms of UseSite Map