Let Ruffino Appraisal Group, LLC. help you figure out if you can get rid of your PMI

It's typically inferred that a 20% down payment is the standard when getting a mortgage. Because the liability for the lender is often only the difference between the home value and the sum due on the loan, the 20% supplies a nice cushion against the costs of foreclosure, reselling the home, and regular value variations in the event a borrower doesn't pay.

During the recent mortgage upturn of the last decade, it became customary to see lenders making deals with down payments of 10, 5 or even 0 percent. How does a lender endure the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. PMI covers the lender if a borrower defaults on the loan and the value of the house is lower than what the borrower still owes 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. It's advantageous for the lender because they secure the money, and they get the money if the borrower defaults, in contrast to a piggyback loan where the lender takes in all the damages.


The money you keep from getting rid of 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 buyer avoid bearing the cost of PMI?

The Homeowners Protection Act of 1998 forces the lenders on the majority of loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law guarantees that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent. So, wise homeowners can get off the hook a little earlier.

Considering it can take several years to arrive at the point where the principal is only 80% of the initial loan amount, it's essential to know how your Florida home has appreciated in value. After all, any appreciation you've acquired over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Even when nationwide trends predict declining home values, realize that real estate is local. Your neighborhood might not be following the national trends and/or your home could have secured equity before things cooled off.

The toughest thing for most people to determine is just when their home's equity rises above the 20% point. An accredited, Florida licensed real estate appraiser can certainly help. It is an appraiser's job to know the market dynamics of their area. At Ruffino Appraisal Group, LLC., we know when property values have risen or declined. We're experts at analyzing value trends in Margate, Broward County, and surrounding areas. Faced with information from an appraiser, the mortgage company will most often eliminate the PMI with little effort. At that time, the home owner can enjoy the savings from that point on.


Did you have less than 20% to put down on your mortgage? Call Ruffino Appraisal Group, LLC. today at 954 448-0054. You may be able to cancel 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