Cronin & Cronin Law Firm PLLC can help you remove your Private Mortgage InsuranceIt's largely understood that a 20% down payment is the standard when getting a mortgage. The lender's risk is generally only the difference between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and natural value fluctuations in the event a purchaser doesn't pay. During the recent mortgage boom of the mid 2000s, it was customary to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to manage the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI covers the lender if a borrower doesn't pay on the loan and the worth of the property is less than the loan balance. PMI can be costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and generally isn't even tax deductible. It's beneficial for the lender because they secure the money, and they get the money if the borrower doesn't pay, unlike a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homeowner avoid bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law promises that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, savvy home owners can get off the hook sooner than expected. It can take countless years to reach the point where the principal is only 20% of the initial loan amount, so it's crucial to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends signify decreasing home values, be aware that real estate is local. Your neighborhood may not be following the national trends and/or your home might have acquired equity before things simmered down. The toughest thing for most homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can certainly help. As appraisers, it's our job to know the market dynamics of our area. At Cronin & Cronin Law Firm PLLC, we know when property values have risen or declined. We're masters at recognizing value trends in Mineola, Nassau County and surrounding areas. Faced with information from an appraiser, the mortgage company will usually do away with the PMI with little trouble. At that time, the homeowner can retain the savings from that point on.
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