Jeff Mazzaferri can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when buying a house. Since the liability for the lender is generally only the difference between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and regular value fluctuationson the chance that a purchaser is unable to pay. Lenders were taking down payments as low as 10, 5 and often 0 percent during the mortgage boom of the mid 2000s. How does a lender handle the additional risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This supplementary plan protects the lender in the event a borrower doesn't pay on the loan and the worth of the house is lower than the loan balance. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and many times isn't even tax deductible. It's favorable for the lender because they obtain the money, and they receive payment if the borrower doesn't pay, separate from a piggyback loan where the lender absorbs all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can prevent bearing the cost of PMIThe Homeowners Protection Act of 1998 requires the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. The law pledges that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, wise home owners can get off the hook a little early. It can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, so it's essential to know how your home has increased in value. After all, any appreciation you've acquired over the years counts towards removing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be following the national trends and/or your home may have acquired equity before things cooled off, so even when nationwide trends indicate falling home values, you should understand that real estate is local. The difficult thing for almost all home owners to understand is just when their home's equity goes over 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 Jeff Mazzaferri, we know when property values have risen or declined. We're masters at pinpointing value trends in Canton, Stark County and surrounding areas. When faced with information from an appraiser, the mortgage company will generally remove the PMI with little trouble. At that time, the home owner can delight in the savings from that point on.
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