What is private mortgage insurance? (PMI)
Mortgage insurance is a type of insurance that helps protect
lenders against losses due to foreclosure. This protection
is provided by private mortgage insurance companies, and
allows lenders to accept lower down payments than would
normally be allowed. Premiums on a $200,000 loan can be
$1,500 per year.
Can mortgage insurance coverage be canceled?
Mortgage insurance is maintained at the option of the
current owner of the mortgage. In many cases, the lender
will allow cancellation of mortgage insurance when the
loan is paid down to 80% of the original property value.
If market conditions permit, GE Appraisal can provide
you with an appraisal that would prove to your lender
that your home has increased in value sufficiently to
have PMI premiums removed. Contact us to find out how.
What improvements add value to my home?
Neighborhood value range, market conditions, size type
and cost of a remodeling project all need to be considered
before embarking on a costly upgrade to your home. An
appraisal can help you decide which projects add market
value to your home, and which would be considered an over
improvement for your market area. Contact us for guidance
on which improvements can provide the best cost/benefit
ratio for your largest investment.
I want to sell my house, what price should I ask?
Set the price too high, and the house sits on the market,
too low and you do not realize the full benefit of your
investment. An appraisal can help you determine the most
probable sale price relative to current market conditions.
Our appraisal staff can discuss with you what improvements
might help you sell your home faster. If you are selling
FHA our appraiser can point out needed FHA repairs that
can be handled before the sale, saving time during the
mortgage process. Contact us for help in setting the sale
price of your home.
Why should I buy, instead of rent?
A home is an investment. When you rent, you write your
monthly check and that money is gone forever. But when
you own your home, you can deduct the cost of your mortgage
loan interest from your federal income taxes, and usually
from your state taxes. This will save you a lot each year,
because the interest you pay will make up most of your
monthly payment for most of the years of your mortgage.
You can also deduct the property taxes you pay as a homeowner.
In addition, the value of your home may go up over the
years. Finally, you'll enjoy having something that's all
yours - a home where your own personal style will tell
the world who you are. When you find a home to purchase,
G.E. Appraisal Service can help you determine the fair
market value. You do not have to use your lenders appraiser.