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 usually accepted when purchasing a home. The lender's risk is usually only the difference between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and regular value changes on the chance that a borrower is unable to pay.

Banks were working with down payments dropping to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This additional policy takes care of the lender in the event a borrower is unable to pay on the loan and the value of the property is less than the balance of the loan.

Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI is pricey to a borrower. Separate from a piggyback loan where the lender consumes all the damages, PMI is advantageous for the lender because they obtain the money, and they get paid if the borrower defaults.


Has your real estate appreciated since you first purchased? Contact Ruffino Appraisal Group, LLC. today at 954 448-0054 to see if you can cancel your Private Mortgage Insurance payment.

How can a homebuyer keep from bearing the cost of PMI?

With the implementation of The Homeowners Protection Act of 1998, lenders are obligated to automatically cease the PMI when the principal balance of the loan equals 78 percent of the primary loan amount on nearly all loans. Acute home owners can get off the hook beforehand. The law stipulates that, upon request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent.

Because it can take several years to get to the point where the principal is just 80% of the original loan amount, it's important to know how your Florida home has appreciated in value. After all, every bit of appreciation you've achieved over the years counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends indicate decreasing home values, understand that real estate is local. Your neighborhood may not be adhering to the national trends and/or your home could have acquired equity before things simmered down.

The toughest thing for almost all consumers to determine is whether their home equity has exceeded the 20% point. An accredited, Florida licensed real estate appraiser can certainly help. It's an appraiser's job to recognize the market dynamics of their area. At Ruffino Appraisal Group, LLC., we're masters at recognizing value trends in Margate, Broward County, and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will most often do away with the PMI with little trouble. At that time, the home owner can delight in the savings from that point on.


Does your monthly mortgage 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 current 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