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Mid-Ohio Appraisal Services can help you remove your Private Mortgage Insurance
A 20% down payment is usually accepted when getting a mortgage.
Since the risk for the lender is generally only the difference between the home value and the amount remaining on the loan, the 20% supplies a nice cushion against the expenses of foreclosure, reselling the home, and regular value fluctuations in the event a purchaser defaults.
The market was working with down payments as low as 10, 5 and frequently 0 percent during the mortgage boom of the mid 2000s.
A lender is able to endure the increased risk of the minimal down payment with Private Mortgage Insurance or PMI.
This supplemental policy protects the lender if a borrower is unable to pay on the loan and the market price of the property is lower than the loan balance.
Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible, PMI can be costly to a borrower.
Instead of a piggyback loan where the lender takes in all the losses, PMI is beneficial for the lender because they acquire the money, and they get the money if the borrower is unable to pay.
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Has your real estate appreciated since you first purchased? Contact Mid-Ohio Appraisal Services today at (740) 522-0011 to see if you can cancel your Private Mortgage Insurance payment.
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How home buyers can avoid bearing the cost of PMI
As a result of The Homeowners Protection Act of 1998, lenders are forced to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount on most loans.
The law promises that, upon request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. So, savvy homeowners can get off the hook a little early.
Because it can take many years to reach the point where the principal is just 80% of the original amount of the loan, it's important to know how your Ohio home has appreciated in value.
After all, any appreciation you've accomplished over time counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark?
Even when nationwide trends predict declining home values, realize that real estate is local. Your neighborhood may not be heeding the national trends and/or your home may have acquired equity before things simmered down.
An accredited, Ohio 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.
Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job!
At Mid-Ohio Appraisal Services, we're masters at recognizing value trends in Columbus, Franklin County, and surrounding areas, and we know when property values have risen or declined.
Faced with data from an appraiser, the mortgage company will often remove the PMI with little effort. At which time, the homeowner can retain the savings from that point on.
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Is PMI a part of your monthly house payment? Call Mid-Ohio Appraisal Services today at (740) 522-0011 or send us an e-mail. Documentation of your home's present value could save you thousands.
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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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Today's Rates:
| 30-yr Fixed | 3.87% | 4% | | 15-yr Fixed | 3.14% | 3.31% | | 1-yr Adj | 2.76% | 3.42% |
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