An appraisal from JM Real Estate Service may help you remove PMI and reduce your mortgage payment.Private Mortgage Insurance or PMI, is typically required by lenders when buyers are putting down less than the standard 20% for a home purchase. PMI protects the lender if a borrower defaults on the loan and the value of the home is less than the loan balance. Since it is bundled into the mortgage payment and often isn't tax deductible, PMI can be expensive to a borrower. When can PMI be removed from a mortgage?The Homeowners Protection Act of 1998 obligates lenders to automatically eliminate the PMI when the principal balance of the loan equals 78% of the primary loan amount on most loans. The law also states that - on request of the home owner - the lender must remove PMI when the principal amount equals only 80%. An accredited, Illinois licensed real estate appraiser can help homeowners figure out just when they reach that point.
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
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