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Ruffino Appraisal Group, LLC. can help you remove your Private Mortgage Insurance

A 20% down payment is usually accepted when getting a mortgage. The lender's only liability is typically just the remainder between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and typical value changes in the event a borrower defaults.

Banks were taking down payments dropping to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. How does a lender handle the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional plan guards the lender in the event a borrower defaults on the loan and the market price of the property is lower than the loan balance.

Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible, PMI can be expensive to a borrower. It's favorable for the lender because they secure the money, and they get paid if the borrower is unable to pay, different from a piggyback loan where the lender absorbs all the costs.


The amount you keep from dropping the PMI required when you got your mortgage will make up for the price of the appraisal in a matter of months. Nobody is more qualified than Ruffino Appraisal Group, LLC. when it comes to appreciating values in the city of Margate and Broward County. Contact us today.

How can homebuyers avoid bearing the expense of PMI?

With the passage of The Homeowners Protection Act of 1998, lenders are required to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount on nearly all loans. Keen home owners can get off the hook sooner than expected. The law guarantees that, at the request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent.

It can take several years to arrive at the point where the principal is only 80% of the initial loan amount, so it's essential to know how your Florida home has increased in value. After all, any appreciation you've acquired over the years counts towards abolishing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not adhere to national trends and/or your home might have acquired equity before things simmered down. So even when nationwide trends signify falling home values, you should realize that real estate is local.

The difficult thing for many consumers to determine is just when their home's equity goes over the 20% point. An accredited, Florida licensed real estate appraiser can surely help. Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job! At Ruffino Appraisal Group, LLC., we're experts at analyzing value trends in Margate, Broward County, and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will most often do away with the PMI with little effort. At which time, the homeowner can retain the savings from that point on.


The money you keep from dropping your PMI will make up for the price of the appraisal in a matter of months. Nobody is more qualified than Ruffino Appraisal Group, LLC. when it comes to appreciating values in Margate and Broward County. Contact us today.

Want to learn more about PMI and the Homeowners Protection Act? Click this link:

Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year