DANIEL I KANDEL can help you remove your Private Mortgage InsuranceWhen purchasing a home, a 20% down payment is typically the standard. The lender's risk is often only the difference between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and regular value changes on the chance that a purchaser defaults. During the recent mortgage upturn of the last decade, it was customary to see lenders requiring down payments of 10, 5 or often 0 percent. How does a lender endure the additional risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower doesn't pay on the loan and the market price of the house is lower than the balance of the loan. PMI can be expensive to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and generally isn't even tax deductible. Separate from a piggyback loan where the lender takes in all the losses, PMI is money-making for the lender because they obtain the money, and they get the money if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can refrain from paying PMIThe Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Smart home owners can get off the hook a little early. The law promises that, upon request of the home owner, the PMI must be dropped when the principal amount equals just 80 percent. It can take many years to reach the point where the principal is only 20% of the initial amount borrowed, so it's necessary to know how your home has grown in value. After all, every bit of appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be adopting the national trends and/or your home might have gained equity before things simmered down, so even when nationwide trends signify plummeting home values, you should realize that real estate is local. The toughest thing for many homeowners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to know the market dynamics of our area. At DANIEL I KANDEL, we know when property values have risen or declined. We're experts at determining value trends in Weston/Ft. Lauderdale, Broward County and surrounding areas. Faced with information from an appraiser, the mortgage company will often do away with the PMI with little effort. At which time, the homeowner can relish the savings from that point on.
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