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

It's generally inferred that a 20% down payment is the standard when buying a house. Considering the liability for the lender is usually only the remainder between the home value and the amount remaining on the loan, the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and typical value fluctuations in the event a borrower doesn't pay.

During the recent mortgage upturn of the last decade, it became common to see lenders reducing down payments to 10, 5 or even 0 percent. How does a lender manage the added risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower is unable to pay on the loan and the value of the house is lower than the balance of the loan.

Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be expensive to a borrower. Different from a piggyback loan where the lender absorbs all the deficits, PMI is advantageous for the lender because they collect the money, and they receive payment if the borrower defaults.


	The money you keep from dropping your PMI will make up for the cost 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 buyers can keep from paying PMI

With the passage of The Homeowners Protection Act of 1998, lenders are forced to automatically stop the PMI when the principal balance of the loan equals 78 percent of the initial loan amount on nearly all loans. The law states that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, smart home owners can get off the hook a little earlier.

It can take several years to get to the point where the principal is just 80% of the original loan amount, so it's essential to know how your Florida home has grown in value. After all, any appreciation you've acquired over time counts towards removing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? Your neighborhood might not adhere to national trends and/or your home might have gained equity before things cooled off. So even when nationwide trends signify declining home values, you should realize that real estate is local.

The toughest thing for most people to figure out is whether their home equity has exceeded the 20% point. A certified, Florida licensed real estate appraiser can definitely help. It is an appraiser's job to know 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. Faced with information from an appraiser, the mortgage company will often cancel the PMI with little trouble. At which time, the homeowner can enjoy the savings from that point on.


	Is PMI a lineitem in 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 current 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