Have equity in your home? Want a lower payment? An appraisal from LRS & Associates can help you get rid of your PMI.

A 20% down payment is usually the standard when purchasing a home. Because the liability for the lender is generally only the difference between the home value and the amount remaining on the loan, the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and regular value fluctuations in the event a borrower doesn't pay.

Lenders were accepting down payments dropping to 10, 5 and frequently 0 percent in the peak of last decade's mortgage boom. How does a lender manage the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower defaults on the loan and the value of the house is lower than what is owed on the loan.

PMI is pricey to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible. It's profitable for the lender because they collect the money, and they receive payment if the borrower is unable to pay, unlike a piggyback loan where the lender takes in all the damages.


	Is PMI a part of your monthly house payment? Call LRS & Associates today at 7278562272 or send us an e-mail. Documentation of your home's present value could save you thousands.

How can homebuyers keep from bearing the expense of PMI?

As a result of The Homeowners Protection Act of 1998, lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount on nearly all loans. The law designates that, upon request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. So, wise homeowners can get off the hook sooner than expected.

Because it can take several years to reach the point where the principal is only 80% of the original loan amount, it's essential to know how your Florida home has increased in value. After all, all of the appreciation you've obtained over time counts towards removing PMI. So why pay it after your loan balance has fallen below the 80% mark? Even when nationwide trends signify falling home values, understand that real estate is local. Your neighborhood may not be following the national trends and/or your home may have acquired equity before things simmered down.

An accredited, Florida licensed real estate appraiser can help homeowners figure out if their equity has exceeed the 20% point, as it's a difficult thing to know. Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job! At LRS & Associates, we know when property values have risen or declined. We're masters at recognizing value trends in Spring Hill, Pasco County, and surrounding areas. When faced with information from an appraiser, the mortgage company will most often cancel the PMI with little anxiety. At that time, the homeowner can enjoy the savings from that point on.


	The savings from dropping your PMI pays for the appraisal in no time. Nobody is more qualified than LRS & Associates when it comes to appreciating values in Spring Hill and Pasco 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