Robbins-Marine Property Valuation, Inc. can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when buying a house. The lender's liability is often only the remainder between the home value and the sum remaining on the loan, so the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and natural value fluctuations on the chance that a borrower defaults. During the recent mortgage upturn of the last decade, it was widespread to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender handle the added risk of the small down payment? The solution is Private Mortgage Insurance or PMI. This added plan protects the lender in case a borrower is unable to pay on the loan and the market price of the property is less than what is owed on the loan. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times isn't even tax deductible. It's money-making for the lender because they obtain the money, and they get paid if the borrower doesn't pay, separate from 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 homebuyers prevent bearing the expense of PMI?The Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Savvy home owners can get off the hook beforehand. The law pledges that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. Because it can take many years to reach the point where the principal is only 20% of the original loan amount, it's crucial to know how your home has increased in value. After all, every bit of appreciation you've achieved over time counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Your neighborhood may not be heeding the national trends and/or your home may have secured equity before things simmered down, so even when nationwide trends predict declining home values, you should realize that real estate is local. 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 tough thing to know. It is an appraiser's job to know the market dynamics of their area. At Robbins-Marine Property Valuation, Inc., we know when property values have risen or declined. We're experts at determining value trends in Littleton, Jefferson County and surrounding areas. When faced with data from an appraiser, the mortgage company will often do away with the PMI with little effort. At that time, the homeowner can relish the savings from that point on.
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