Roser Real Estate Appraisal, Inc. can help you remove your Private Mortgage Insurance

When buying a house, a 20% down payment is usually the standard. The lender's liability is oftentimes only the difference between the home value and the balance due on the loan, so the 20% adds a nice buffer against the expenses of foreclosure, reselling the home, and typical value changes in the event a purchaser is unable to pay.

Banks were working with down payments as low as 10, 5 and frequently 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the increased risk of the low down payment with Private Mortgage Insurance or PMI. This additional policy protects the lender in case a borrower is unable to pay on the loan and the value of the house is lower than the loan balance.

PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and oftentimes isn't even tax deductible. Unlike a piggyback loan where the lender consumes all the losses, PMI is lucrative for the lender because they obtain the money, and they get paid if the borrower is unable to pay.


	Does your monthly house payment have a lineitem for PMI? Call Roser Real Estate Appraisal, Inc. today at 440 734 0812 or send us an e-mail. Documentation of your home's current value could save you thousands.

How can a home buyer avoid paying PMI?

The Homeowners Protection Act of 1998 forces the lenders on the majority of loans to automatically stop the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Savvy homeowners can get off the hook beforehand. The law pledges that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent.

Because it can take many years to reach the point where the principal is only 80% of the initial amount borrowed, it's important to know how your Ohio home has increased in value. After all, any appreciation you've achieved over time counts towards abolishing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? Your neighborhood might not adhere to national trends and/or your home may have gained equity before things cooled off. So even when nationwide trends indicate a reduction in home values, you should know most importantly that real estate is local.

An accredited, Ohio 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 Roser Real Estate Appraisal, Inc., we're masters at identifying value trends in Avon, Cuyahoga County, and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will most often remove the PMI with little anxiety. At that time, the home owner can delight in the savings from that point on.


	The money you keep from dropping the PMI required when you got your mortgage pays for the appraisal in a matter of months. Roser Real Estate Appraisal, Inc. has years of experience with real estate value trends in Avon and Cuyahoga County. Contact us today.

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