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

A 20% down payment is typically the standard when purchasing a home. The lender's only liability is typically just the difference between the home value and the sum due on the loan, so the 20% adds a nice buffer against the costs of foreclosure, reselling the home, and typical value changes on the chance that a purchaser defaults.

During the recent mortgage boom of the last decade, it became customary to see lenders making deals with down payments of 10, 5, 3 or even 0 percent. How does a lender handle the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI guards the lender if a borrower defaults on the loan and the value of the house is lower than the balance of the loan.

PMI is pricey to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and often isn't even tax deductible. As opposed to a piggyback loan where the lender takes in all the costs, PMI is beneficial for the lender because they acquire the money, and they are covered if the borrower is unable to pay.

The amount you keep from getting rid of your PMI pays for the appraisal in a matter of months. Ruffino Appraisal Group, LLC. has years of experience with value trends in the city of Margate and Broward County. Contact us today.

How can a buyer refrain from paying PMI?

With the passage of The Homeowners Protection Act of 1998, lenders are obligated to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount on most loans. Acute home owners can get off the hook a little earlier. The law designates that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent.

It can take several years to get to the point where the principal is just 80% of the initial amount borrowed, so it's necessary to know how your Florida home has appreciated in value. After all, every bit of appreciation you've achieved over the years counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not conform to national trends and/or your home might have acquired equity before things cooled off. So even when nationwide trends signify a reduction in home values, you should know most importantly that real estate is local.

The hardest thing for many homeowners to determine is whether their home equity has exceeded the 20% point. An accredited, Florida licensed real estate appraiser can certainly help. It is 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 usually eliminate the PMI with little anxiety. At which time, the home owner can enjoy the savings from that point on.

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.

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