$27k payment to remove PMI?!

[Nick Dillaha]

Hi, primary residence question. Currently have a townhouse rented and my primary residence. My PMI payment on my house is $212/month. I just had an appraisal completed and because I have only had the loan for less than 5 years I am required to have 75/25 loan to value. With that said, that's a $27k payment towards my mortgage to remove PMI. That's $2544/year that wouldn't be wasted. I have $50k saved so that would be a big hit. I could wait it out intil 2021 when I'll be at 80/20 and PMI will come off the loan anyways, but that's an $5k gone to nothing.

Thoughts??

I’ve been saving for another investment but I don’t currently have anything available in my area. Not sure if it’s worth to spend the money. Thanks for your help!

[Anthony Gayden]

Originally posted by @Nick Dillaha:

Hi, primary residence question. Currently have a townhouse rented and my primary residence. My PMI payment on my house is $212/month. I just had an appraisal completed and because I have only had the loan for less than 5 years I am required to have 75/25 loan to value. With that said, that's a $27k payment towards my mortgage to remove PMI. That's $2544/year that wouldn't be wasted. I have $50k saved so that would be a big hit. I could wait it out intil 2021 when I'll be at 80/20 and PMI will come off the loan anyways, but that's an $5k gone to nothing.

Thoughts??

I’ve been saving for another investment but I don’t currently have anything available in my area. Not sure if it’s worth to spend the money. Thanks for your help!

Here is an interesting thing you could do. Use the $27K to get rid of the PMI, then take a HELOC out on the property. Use the money from the HELOC to invest.