LARKINS APPRAISAL SERVICE

A 20% down payment is usually accepted when buying a house. The lender's risk is usually only the difference between the home value and the amount remaining on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and natural value variations in the event a purchaser is unable to pay... The market was accepting down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. How does a lender manage the increased risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI takes care of the lender in case a borrower doesn't pay on the loan and the market price of the home is less than what is owed on the loan... Larkins Appraisal Services Specializing in Residential Real Estate Property Appraisals in TN. We Are FHA Approved and State Certified Residential Appraisers.

Primary location: Kingsport United States