Nicholas Cowan can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when purchasing a home. The lender's liability is usually only the difference between the home value and the amount remaining on the loan, so the 20% adds a nice buffer against the charges of foreclosure, selling the home again, and regular value fluctuations on the chance that a purchaser is unable to pay. The market was working with down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the additional risk of the small down payment with Private Mortgage Insurance or PMI. This added policy protects the lender if a borrower is unable to pay on the loan and the value of the home is less than the loan balance. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and frequently 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 paid if the borrower defaults, unlike 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 home owners can refrain from paying PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law stipulates that, upon request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. So, smart homeowners can get off the hook ahead of time. It can take many years to get to the point where the principal is only 20% of the initial amount of the loan, so it's important to know how your home has grown in value. After all, any appreciation you've achieved over time counts towards removing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Your neighborhood might not be adhering to the national trends and/or your home might have gained equity before things calmed down, so even when nationwide trends predict falling home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Nicholas Cowan, we know when property values have risen or declined. We're masters at identifying value trends in Muskogee, Muskogee County and surrounding areas. Faced with information from an appraiser, the mortgage company will often cancel the PMI with little effort. At that time, the homeowner can relish the savings from that point on.
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