Tierney Appraisals can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when getting a mortgage. Since the risk for the lender is usually only the difference between the home value and the amount remaining on the loan, the 20% provides a nice cushion against the expenses of foreclosure, reselling the home, and regular value changeson the chance that a borrower doesn't pay. The market was accepting down payments down to 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to endure the added risk of the small down payment with Private Mortgage Insurance or PMI. This additional policy takes care of the lender if a borrower doesn't pay on the loan and the market price of the house is lower than what is owed on the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and generally isn't even tax deductible, PMI can be pricey to a borrower. Contradictory to a piggyback loan where the lender consumes all the deficits, PMI is beneficial for the lender because they acquire the money, and they receive payment if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a buyer prevent bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Keen home owners can get off the hook sooner than expected. The law states that, at the request of the homeowner, the PMI must be dropped when the principal amount reaches just 80 percent. It can take many years to reach the point where the principal is only 20% of the original loan amount, so it's necessary to know how your home has appreciated in value. After all, any appreciation you've achieved over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be reflecting the national trends and/or your home could have acquired equity before things simmered down, so even when nationwide trends indicate declining home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Tierney Appraisals, we're experts at pinpointing value trends in Beverly, Essex County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little trouble. At that time, the home owner can delight in the savings from that point on.
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