Should I remove my PMI

[Wesam Mahmoud]

Have the option to remove my PMI should I keep it or remove it? Is it worth having it or is it a waste of money

[Andrew B.]

I'm confused. Typically a bank does not ask if you want PMI. They include it if your equity isn't high enough. I'm assuming you're considering making a principal payment to get your PMI removed. This is a simple calculation. PMI*12=your yearly PMI payment. Your yearly PMI divided by the cash needed to remove it, gives you your return on that cash in percentage. If that % is high enough to satisfy you, you remove PMI. If you can invest that money elsewhere to get a higher return, do that. Consider that PMI removal is a risk free rate of return while investing elsewhere is a riskier investment.