Let Adams Appraisal Svcs. LLC help you learn if you can eliminate your PMI
When buying a house, a 20% down payment is
usually the standard. The lender's risk is often only the remainder between the
home value and the balance outstanding on the loan, so the 20% provides a nice
buffer against the costs of foreclosure, selling the home again, and regular
value variations on the chance that a purchaser doesn't pay.
How home owners can keep from bearing the expense of PMI
With the implementation of The Homeowners Protection Act of 1998, lenders are required to automatically stop the PMI when the principal balance of the loan equals 78 percent of the primary loan amount on nearly all loans.
Savvy homeowners can get off the hook
ahead of time. The law promises that, at the request of the homeowner, the PMI
must be released when the principal amount equals just 80 percent.
The difficult thing for most consumers to determine is just when their home's equity goes over the 20% point. A certified, Colorado licensed real estate appraiser can certainly help. It is an appraiser's job to understand the market dynamics of their area.
At Adams Appraisal Svcs. LLC, we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will often cancel the PMI with little trouble. At that time, the homeowner can enjoy the savings from that point on.
Want to learn more about PMI and the Homeowners Protection Act? Click this link: