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

It's typically known that a 20% down payment is accepted when buying a house. Since the risk for the lender is usually only the remainder between the home value and the amount remaining on the loan, the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and typical value changes in the event a purchaser doesn't pay.

During the recent mortgage upturn of the mid 2000s, it was common to see lenders reducing down payments to 10, 5 or even 0 percent. A lender is able to handle the additional risk of the small down payment with Private Mortgage Insurance or PMI. This added policy covers the lender in case a borrower is unable to pay on the loan and the market price of the house is less than what the borrower still owes on the loan.

PMI can be costly to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible. It's beneficial for the lender because they secure the money, and they receive payment if the borrower is unable to pay, different from a piggyback loan where the lender takes in all the losses.

The savings from cancelling the PMI required when you got your mortgage will make up for the price of the appraisal in a matter of months. 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 prevent bearing the cost of PMI?

The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law promises that, at the request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. So, wise home owners can get off the hook sooner than expected.

Since it can take many years to get to the point where the principal is only 80% of the original loan amount, it's crucial to know how your Florida home has grown 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 your loan balance has dropped below the 80% threshold? Even when nationwide trends hint at decreasing home values, understand that real estate is local. Your neighborhood may not be minding the national trends and/or your home could have secured equity before things simmered down.

The hardest thing for many people to figure out 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 know the market dynamics of their area. At Ruffino Appraisal Group, LLC., we're masters at pinpointing 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 generally cancel the PMI with little trouble. At that time, the home owner can enjoy the savings from that point on.

Is PMI a part of your monthly house payment? Call Ruffino Appraisal Group, LLC. today at 954 448-0054 or send us an e-mail. Documentation of your home's present value could save you thousands.

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