can help you remove your Private Mortgage InsuranceA 20% down payment is typically the standard when purchasing a home. Because the liability for the lender is often only the remainder between the home value and the sum due on the loan, the 20% provides a nice buffer against the charges of foreclosure, selling the home again, and natural value changeson the chance that a purchaser is unable to pay. Lenders were working with down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the added risk of the low down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower is unable to pay on the loan and the worth of the property is lower than the loan balance. PMI can be expensive to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times isn't even tax deductible. Different from a piggyback loan where the lender consumes all the costs, PMI is money-making for the lender because they collect 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 home buyers can keep from paying PMIThe Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law states that, upon request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. So, acute home owners can get off the hook a little early. It can take countless years to reach the point where the principal is just 20% of the initial loan amount, so it's necessary to know how your home has appreciated in value. After all, all of the appreciation you've acquired 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 hint at falling home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home might have gained equity before things calmed down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. It's an appraiser's job to keep up with the market dynamics of their area. At , we're masters at pinpointing value trends in , Baltimore County and surrounding areas, and we know when property values have risen or declined. Faced with information from an appraiser, the mortgage company will generally remove the PMI with little effort. At that time, the home owner can delight in the savings from that point on.
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