Brown Properties

Valbridge Property Advisors, located in Montgomery, AL, is a distinguished real estate agency that offers a comprehensive range of services in property valuation and advisory. They are known for their professional expertise and local market knowledge, assisting clients in navigating the complexities of real estate transactions. With a commitment to integrity and excellence, they strive to deliver tailored solutions that meet the unique needs of each client. Generated from this place's information

SpecialtiesSpecializing in: - Real Estate Appraisers - Real Estate Appraisers-Commercial & Industrial

When purchasing a home, a 20% down payment is typically the standard. The lender's only liability is often just the remainder between the home value and the balance remaining on the loan, so the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and natural value fluctuations in the event a purchaser doesn't pay. During the recent mortgage boom of the last decade, it became common to see lenders reducing down payments to 10, 5, 3 or sometimes 0 percent. A lender is able to handle the additional risk of the small down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower doesn't pay on the loan and the market price of the house is lower than what is owed on the loan. PMI can be pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and frequently isn't even tax deductible. Different from a piggyback loan where the lender absorbs all the deficits, PMI is money-making for the lender because they acquire the money, and they receive payment if the borrower defaults.