v Private Mortgage Insurance
Over the past 10 years the American Mortgage Industry has developed many great new loan programs that have enabled hard working people with little or no available liquid capital to buy new and existing homes around the country. While the conventional 30 year mortgage loan only traditionally covered 80% of a home's entire market value, these new programs promise to loan up to 90%, 95%, and even up to 125% of a home's market value. These new loan  programs have allowed many previously ineligible first time buyers to own their first dream home, have contributed to our current strong housing market which has continued to bolster the overall economy, and have allowed many people to reduce their overall taxable debt through consolidation.	However, with the advent of these new more aggressive loan programs has also come the rise in foreclosures. Some analysts have suggested that this is due to the fact that many of these new buyers have little invested in the property and are more willing to simply walk away from a home in the event of hardship. In order to better protect their investments, lenders have required Private Mortgage Insurance on any loan that secures over 80% of the home's market value.	Private Mortgage Insurance is required on a few types of loans for the life of the loan such as government insured loans like FHA and VA. However, for most conventional loans, the law requires PMI be cancelled if the home equity reaches the 20% threshold. In a typical loan, the time at which the PMI will be cancelled is calculated automatically by the lender, does not account for market appreciation, and typically takes many years, costing most homeowners hundreds and even thousands of dollars annually. Here in MD, VA, and DC where we have had a very strong Real Estate economy and properties have shown good appreciation, a home can easily appreciate to a point where the PMI can be dropped prematurely.
If your property has in fact appreciated to a point where you have 20% or more equity in your home or if you have had significant recent improvements to your home, chances are we can help you save hundreds of dollars a year on your current mortgage without going to all of the expense, time, and effort of a full refinance of your home by performing a thorough, Maryland State Licensed Appraisal of your property and submitting it to your current lender on your behalf. We will be more than happy to answer any questions and to do whatever we can to make this process as simple and hassle free as possible. Please feel free to contact us with any questions you may have.