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 getting a mortgage. Considering the liability for the lender is oftentimes only the remainder between the home value and the sum outstanding on the loan, the 20% provides a nice buffer against the charges of foreclosure, selling the home again, and natural value changes in the event a borrower defaults.

During the recent mortgage upturn of the last decade, it became widespread to see lenders only asking for down payments of 10, 5, 3 or sometimes 0 percent. How does a lender manage the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This added plan protects the lender in the event a borrower is unable to pay on the loan and the market price of the home is lower than the balance of the loan.

Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible, PMI can be expensive to a borrower. Unlike a piggyback loan where the lender takes in all the damages, PMI is advantageous for the lender because they acquire the money, and they are covered if the borrower doesn't pay.


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

How can a home owner prevent bearing the expense of PMI?

As a result of The Homeowners Protection Act of 1998, lenders are forced to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount on most loans. Smart homeowners can get off the hook sooner than expected. The law guarantees that, at the request of the homeowner, the PMI must be released when the principal amount equals just 80 percent.

Because it can take a significant number of years to arrive at the point where the principal is only 80% of the original amount of the loan, it's crucial to know how your Florida home has increased in value. After all, all of the appreciation you've obtained over time counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Even when nationwide trends signify falling home values, understand that real estate is local. Your neighborhood might not be following the national trends and/or your home might have acquired equity before things cooled off.

An accredited, Florida licensed real estate appraiser can help homeowners figure out just when their home's equity goes over the 20% point, as it's a tough 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 experts at recognizing value trends in Margate, Broward County, and surrounding areas. Faced with information from an appraiser, the mortgage company will often remove the PMI with little effort. At that time, the home owner can retain the savings from that point on.


Did you have less than 20% to put down on your mortgage? Contact Ruffino Appraisal Group, LLC. today at 954 448-0054 to see if you can save money by removing your Private Mortgage Insurance payment.

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