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term of your loan to 255 months, saving almost NINE YEARS worth of payments! The total interest paid would decrease to $162,150, a SAVINGS OF OVER $84,000 in INTEREST!
Another way to potentially save thousands of dollars requires you pay for an appraisal. Most mortgage lenders require homeowners, who initially invest less than 20 percent of the purchase price of the home they purchase, to buy private mortgage insurance. The insurance, often called PMI (Private Mortgage Insurance) or MIP, is intended to insulate the lender’s risk. The lender with 20% down has greater collateral than a lender with five or ten percent down. From the lender’s point of view their risk is greater therefore they require the borrower to offset the additional risk by paying the private mortgage insurance premium.
PMI insurance payments vary and are paid monthly as part of your mortgage payment, much like you pay your homeowner’s insurance and taxes. The number of homeowners paying for the coverage has swelled in recent years as lenders have
loosened requirements and allowed more mortgages with 5 or 10 percent down payments. You may be eligible to cancel the insurance when your mortgage principal (the amount you owe) equals eighty percent or less of your home’s
value. Lenders use the phrase loan to value or LTV. You must take the initiative. If you believe you qualify, proof of value must be presented to your lender. The first step is to call your lender. Many lenders have approved appraisers and may require you use an appraiser on their approved list to document the value of your property. If you purchased your home with less than 20 percent down, you are probably paying PMI. Some mortgage lenders must automatically cancel your PMI insurance. Before you pay for an appraisal you may wish to read this informative article http://www.frbsf.org/publications/consumer/pmi.html Any one of the associates at RE/MAX Best will complete a computer market appraisal for you at no cost.
Whether you’re thinking about buying or selling or seeking information, rely on RE/MAX Best Associates 800-391-BEST(2378) or 913-345-BEST(2378) to provide accurate up to date information about the marketplace. info@kansascityehomes.com www.kansascityehomes.com