Have equity in your home? Want a lower payment? An appraisal from Ruffino Appraisal Group, LLC. can help you get rid of your PMI.

A 20% down payment is typically the standard when buying a house. Because the risk for the lender is generally only the remainder between the home value and the sum remaining on the loan, the 20% provides a nice cushion against the charges of foreclosure, selling the home again, and typical value changes in the event a purchaser defaults.

The market was accepting down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplemental plan covers the lender in case a borrower doesn't pay on the loan and the value of the property is lower than what the borrower still owes on the loan.

Because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and on many occasions isn't even tax deductible, PMI can be costly to a borrower. As opposed to a piggyback loan where the lender takes in all the damages, PMI is advantageous for the lender because they acquire the money, and they get paid if the borrower is unable to pay.


The savings from dropping the PMI required when you got your mortgage pays for the appraisal in a matter of months. Ruffino Appraisal Group, LLC. has years of experience with value trends in the city of Margate and Broward County. Contact us today.

How can home buyers prevent bearing the expense of PMI?

With the implementation of The Homeowners Protection Act of 1998, lenders are forced to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount on nearly all loans. Smart homeowners can get off the hook sooner than expected. The law designates that, at the request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent.

It can take a significant number of years to arrive at the point where the principal is only 80% of the original amount borrowed, so it's essential to know how your Florida home has grown in value. After all, every bit of appreciation you've obtained over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Even when nationwide trends forecast lower overall home values, understand that real estate is local. Your neighborhood might not be reflecting the national trends and/or your home may have gained equity before things declined.

An accredited, Florida licensed real estate appraiser can help homeowners figure out if their equity has exceeed the 20% point, as it's a difficult thing to know. Market dynamics and neighborhood-specific pricing trends are an appraiser's primary job! At Ruffino Appraisal Group, LLC., we know when property values have risen or declined. We're masters at determining value trends in Margate, Broward County, and surrounding areas. Faced with figures from an appraiser, the mortgage company will generally eliminate the PMI with little trouble. At that time, the homeowner can relish the savings from that point on.


Does your monthly house payment include a fee for PMI? Call Ruffino Appraisal Group, LLC. today at 954 448-0054 or send us an e-mail. Documentation of your home's present value could save you thousands.

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