Lower House Payment?

Your mortgage payment is a combination of different charges. There's the principal-the money you are borrowing. The interest-the fee you pay the bank to loan you the money. The property tax and home owners insurance-that is held in escrow. And, perhaps Private Mortgage Insurance more commonly referred to as PMI. 

PMI is required when more than 80% of the homes value is being borrowed from the bank. Most all lenders will require you purchase this insurance.

PMI protects the lender, not you.

This insurance is folded into your monthly payment and is often not thought of again. However, once your equity position, either from paying down principal or market value increase causes you to break that 80% barrier, private mortgage insurance may no longer be required.

The Home Owner Protection Act became effective in 1999. This Act, also known as PMI Cancellation Act, requires lenders to relieve the homeowner of this fee once the balance is paid down to 78% of the original value.

If you would like to reduce your house payment, consider Harley Appraisals, LLC for a statement regarding your homes value. The monthly savings will easily cover the cost of an appraisal. Call now 804-464-8947