Streamline Appraisals, LLC can help you remove your Private Mortgage Insurance

A 20% down payment is typically accepted when purchasing a home. Since the liability for the lender is generally only the remainder between the home value and the sum due on the loan, the 20% provides a nice cushion against the costs of foreclosure, selling the home again, and typical value fluctuations on the chance that a borrower is unable to pay.

During the recent mortgage boom of the mid 2000s, it was common to see lenders reducing down payments to 10, 5, 3 or often 0 percent. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower doesn't pay on the loan and the value of the property is lower than the balance of the loan.

PMI is costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible. Instead of a piggyback loan where the lender consumes all the losses, PMI is lucrative for the lender because they acquire the money, and they are covered if the borrower defaults.


	The savings from getting rid of the PMI required when you got your mortgage pays for the appraisal in a matter of months. Nobody is more qualified than Streamline Appraisals, LLC when it comes to appreciating values in the city of High Point and Guilford County. Contact us today.

How can home buyers avoid bearing the expense of PMI?

The Homeowners Protection Act of 1998 makes the lenders on the majority of loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law guarantees that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, wise home owners can get off the hook a little early.

Since it can take several years to get to the point where the principal is just 80% of the initial loan amount, it's necessary to know how your North Carolina home has appreciated in value. After all, all of the appreciation you've acquired over time counts towards abolishing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends hint at decreasing home values, be aware that real estate is local. Your neighborhood may not be minding the national trends and/or your home might have gained equity before things declined.

An accredited, North Carolina licensed real estate appraiser can help home owners figure out just when their home's equity goes over the 20% point, as it's a hard thing to know. Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job! At Streamline Appraisals, LLC, we know when property values have risen or declined. We're experts at pinpointing value trends in High Point, Guilford County, and surrounding areas. When faced with data from an appraiser, the mortgage company will usually do away with the PMI with little effort. At which time, the homeowner can enjoy the savings from that point on.


	Has your real estate appreciated since you first purchased? Call Streamline Appraisals, LLC today at 336-882-0611. You may be able to save money by removing 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