Did you secure your mortgage with less than 20% down? If so PMI is something increasing your payment. How can homebuyers avoid bearing the expense of PMI?
With the passage of The Homeowners Protection Act of 1998, lenders are forced to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount on most loans. The law promises that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent.
So, wise homeowners can get off the hook a little earlier. Since it can take several years to arrive at the point where the principal is only 80% of the original amount borrowed, it’s important to know how your Arizona home has appreciated in value. After all, every bit of appreciation you’ve accomplished over the years counts towards abolishing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? surrounding areas.
Faced with data from an appraiser, the mortgage company will generally remove the PMI with little anxiety. At that time, the home owner can retain the savings from that point on
A certified, Arizona licensed real estate appraiser can help homeowners figure out if their equity has reached the 20% point. It is an appraiser’s job to recognize the market dynamics of their area. At DSH Appraisals Services, we know when property values have risen or declined. We’re masters at analyzing value trends in Maricopa and Pinal counties.