Valicity LLC can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when buying a house. The lender's risk is often only the remainder between the home value and the amount due on the loan, so the 20% supplies a nice buffer against the charges of foreclosure, selling the home again, and regular value fluctuations in the event a purchaser defaults. 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 additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This supplementary plan guards the lender in the event a borrower is unable to pay on the loan and the value of the house is less than the balance of the loan. PMI is costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and generally isn't even tax deductible. It's money-making for the lender because they collect the money, and they receive payment if the borrower doesn't pay, separate from a piggyback loan where the lender takes in all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer avoid paying PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cease the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Wise home owners can get off the hook ahead of time. The law promises that, upon request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. It can take many years to reach the point where the principal is only 20% of the original amount borrowed, so it's essential to know how your home has grown in value. After all, all of the appreciation you've achieved over the years counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% mark? Even when nationwide trends forecast declining home values, be aware that real estate is local. Your neighborhood might not be following the national trends and/or your home may have secured equity before things cooled off. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Valicity LLC, we know when property values have risen or declined. We're masters at determining value trends in Eureka, Humboldt County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often remove the PMI with little trouble. At which time, the home owner can retain the savings from that point on.
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