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

A 20% down payment is typically the standard when buying a house. The lender's liability is often only the difference between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and typical value variations on the chance that a purchaser is unable to pay.

Lenders were working with down payments discounted to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender handle the additional risk of the low down payment? The answer is Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower defaults on the loan and the market price of the house is less than what is owed on the loan.

Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI is costly to a borrower. It's beneficial for the lender because they secure the money, and they get the money if the borrower defaults, as opposed to a piggyback loan where the lender absorbs all the costs.


Does your monthly mortgage payment have a lineitem for PMI? Call Ruffino Appraisal Group, LLC. today at 954 448-0054 or send us an e-mail. A new appraisal could save you thousands.

How can a homebuyer refrain from bearing the expense of PMI?

With the implementation of The Homeowners Protection Act of 1998, lenders are obligated to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount on most loans. The law states that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. So, savvy homeowners can get off the hook sooner than expected.

Since it can take several 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 appreciated in value. After all, every bit of appreciation you've obtained over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Your neighborhood might not follow national trends and/or your home may have acquired equity before the economy cooled off. So even when nationwide trends predict falling home values, you should understand that real estate is local.

The hardest thing for most consumers to determine is whether their home equity has exceeded the 20% point. A certified, Florida licensed real estate appraiser can surely help. It's an appraiser's job to understand the market dynamics of their area. At Ruffino Appraisal Group, LLC., we're experts at analyzing value trends in Margate, Broward County, and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will usually cancel the PMI with little trouble. At which time, the homeowner can enjoy the savings from that point on.


The savings from dropping the PMI required when you got your mortgage will make up for the price of the appraisal in a matter of months. Ruffino Appraisal Group, LLC. stays current with real estate value trends 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