Absolute Contract & Valuation Services can help you remove your Private Mortgage InsuranceIt's largely inferred that a 20% down payment is accepted when purchasing a home. Because the liability for the lender is oftentimes only the difference between the home value and the amount due on the loan, the 20% supplies a nice cushion against the expenses of foreclosure, reselling the home, and typical value fluctuations in the event a borrower doesn't pay. During the recent mortgage upturn of the last decade, it became common to see lenders taking down payments of 10, 5 or often 0 percent. How does a lender endure the additional risk of the low down payment? The answer is Private Mortgage Insurance or PMI. PMI takes care of the lender in case a borrower defaults on the loan and the value of the property is less than what is owed on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and generally isn't even tax deductible. It's lucrative for the lender because they acquire the money, and they get paid if the borrower doesn't pay, contradictory to a piggyback loan where the lender consumes 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 a home owner prevent paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. Acute home owners can get off the hook sooner than expected. The law guarantees that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. Since it can take many years to arrive at the point where the principal is only 20% of the initial loan amount, it's important to know how your home has grown in value. After all, all of the appreciation you've gained over the years counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Your neighborhood may not be minding the national trends and/or your home may have gained equity before things simmered down, so even when nationwide trends signify plunging home values, you should realize that real estate is local. The difficult thing for most homeowners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can definitely help. As appraisers, it's our job to recognize the market dynamics of our area. At Absolute Contract & Valuation Services, we know when property values have risen or declined. We're experts at recognizing value trends in Mansfield, Tarrant County and surrounding areas. When faced with figures from an appraiser, the mortgage company will generally cancel the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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