Let Pioneer DFW Realty help you figure out if you can cancel your PMIA 20% down payment is typically the standard when getting a mortgage. Because the risk for the lender is oftentimes only the difference between the home value and the amount outstanding on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and typical value variationson the chance that a borrower doesn't pay. During the recent mortgage upturn of the mid 2000s, it became customary to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to endure the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. This added plan protects the lender in case a borrower defaults on the loan and the value of the home is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI is costly to a borrower. Different from a piggyback loan where the lender takes in all the damages, PMI is lucrative for the lender because they acquire the money, and they get the money if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a buyer keep from bearing the cost of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Keen homeowners can get off the hook a little earlier. The law designates that, at the request of the homeowner, the PMI must be dropped when the principal amount equals just 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, so it's important to know how your home has appreciated in value. After all, every bit of appreciation you've acquired over the years counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be minding the national trends and/or your home could have gained equity before things calmed down, so even when nationwide trends hint at declining home values, you should understand that real estate is local. The difficult thing for almost all homeowners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can certainly help. It is an appraiser's job to know the market dynamics of their area. At Pioneer DFW Realty, we know when property values have risen or declined. We're masters at identifying value trends in Garland, Dallas County and surrounding areas. When faced with data from an appraiser, the mortgage company will usually cancel the PMI with little anxiety. At that time, the home owner can delight in the savings from that point on.
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