Let Enslen Appraisal Services, LLC help you determine if you can get rid of your PMI

When purchasing a home, a 20% down payment is typically the standard. The lender's only liability is often just the remainder between the home value and the balance remaining on the loan, so the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and natural value fluctuations in the event a purchaser doesn't pay.

During the recent mortgage boom of the last decade, it became common to see lenders reducing down payments to 10, 5, 3 or sometimes 0 percent. A lender is able to handle the additional risk of the small down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower doesn't pay on the loan and the market price of the house is lower than what is owed on the loan.

PMI can be pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and frequently isn't even tax deductible. Different from a piggyback loan where the lender absorbs all the deficits, PMI is money-making for the lender because they acquire the money, and they receive payment if the borrower defaults.


	Has your home value appreciated since you first purchased? Contact Enslen Appraisal Services, LLC today at 3342210448 to see if you can cancel your Private Mortgage Insurance premium.

How home owners can prevent bearing the expense of PMI

As a result of The Homeowners Protection Act of 1998, lenders are forced to automatically cease the PMI when the principal balance of the loan equals 78 percent of the initial loan amount on most loans. Savvy homeowners can get off the hook a little early. The law pledges that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent.

Because it can take several years to reach the point where the principal is only 80% of the initial amount borrowed, it's crucial to know how your Alabama home has appreciated in value. After all, all of the appreciation you've achieved over time counts towards dismissing PMI. So why pay it after the balance of your loan has dropped below the 80% mark? Even when nationwide trends hint at decreasing home values, understand that real estate is local. Your neighborhood may not be adopting the national trends and/or your home might have acquired equity before things declined.

An accredited, Alabama licensed real estate appraiser can help homeowners figure out if their equity has reached the 20% point, as it's a tough thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Enslen Appraisal Services, LLC, we know when property values have risen or declined. We're masters at identifying value trends in Montgomery, Montgomery County, and surrounding areas. When faced with data from an appraiser, the mortgage company will often remove the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.


	Did you have less than 20% to put down on your mortgage? Call Enslen Appraisal Services, LLC today at 3342210448 to see if you can get rid of your Private Mortgage Insurance premium.

Want to learn more about PMI and the Homeowners Protection Act? Click this link:

Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year

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