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

When buying a house, a 20% down payment is typically the standard. The lender's only liability is often just the difference between the home value and the sum remaining on the loan, so the 20% adds a nice cushion against the costs of foreclosure, reselling the home, and natural value variations on the chance that a borrower doesn't pay.

During the recent mortgage boom of the mid 2000s, it became customary to see lenders reducing down payments to 10, 5, 3 or even 0 percent. How does a lender manage the increased risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower is unable to pay on the loan and the market price of the home is less than what the borrower still owes on the loan.

Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and often isn't even tax deductible, PMI can be costly to a borrower. It's beneficial for the lender because they secure the money, and they are covered if the borrower is unable to pay, as opposed to a piggyback loan where the lender absorbs all the costs.


The amount you keep from getting rid of the PMI required when you got your mortgage will make up for the price of the appraisal in no time. 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 homebuyers can prevent bearing the expense of PMI

The Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Smart homeowners can get off the hook ahead of time. The law guarantees that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent.

It can take a significant number of years to arrive at the point where the principal is just 80% of the original loan amount, so it's important to know how your Florida home has appreciated in value. After all, every bit of appreciation you've gained over time counts towards removing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% threshold? Your neighborhood might not conform to national trends and/or your home may have acquired equity before the economy simmered down. So even when nationwide trends hint at decreasing home values, you should understand that real estate is local.

The toughest thing for many people to figure out is just when their home's equity goes over the 20% point. A certified, Florida licensed real estate appraiser can definitely help. It's an appraiser's job to understand the market dynamics of their area. At Ruffino Appraisal Group, LLC., we know when property values have risen or declined. We're experts at identifying 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 which time, the home owner can delight in the savings from that point on.


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 premium.

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