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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 buying a house. Because the liability for the lender is oftentimes only the difference between the home value and the sum remaining on the loan, the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and natural value variations on the chance that a purchaser is unable to pay.

During the recent mortgage boom of the last decade, it became common to see lenders only asking for down payments of 10, 5, 3 or sometimes 0 percent. How does a lender endure the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional policy guards the lender in case a borrower is unable to pay on the loan and the market price of the house is less than what is owed on the loan.

PMI is pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible. Separate from a piggyback loan where the lender consumes all the losses, PMI is advantageous for the lender because they collect the money, and they get the money if the borrower doesn't pay.


The money you keep from dropping your PMI pays for 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 can a home owner keep from bearing the cost of PMI?

With the passage of The Homeowners Protection Act of 1998, lenders are forced to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount on most loans. The law stipulates that, upon request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, acute home owners can get off the hook ahead of time.

It can take a significant number of years to reach the point where the principal is only 80% of the initial amount borrowed, so it's necessary to know how your Florida home has grown in value. After all, any appreciation you've accomplished 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 things declined. So even when nationwide trends forecast decreasing home values, you should realize that real estate is local.

A certified, 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. 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 masters at recognizing value trends in Margate, Broward County, and surrounding areas. When faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little trouble. At that time, the homeowner can relish the savings from that point on.


The savings from cancelling your PMI pays for 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