Monday, June 18, 2007

Goodbye PMI?

PMI, as most of you probably already know, is Private Mortgage Insurance and is basically designed to protect the lender so that if anything happens to the borrower, that the lender is assured to get the value of the loan back. Unfortunately for me, when purchasing the condo I live in, it was not with enough money to avoid the PMI. The PMI is no laughing matter as it sucks away close to 150 dollars per month. Since I've lived here over three years, that calculates out to about 5400 dollars. It is a horrible waste of money. Unfortunately, the real estate market has been relatively flat where I am and the appreciation is going slower than I would have liked.

In order to get PMI removed, you often need to have another appraisal done on your property. And luckily for me, a few things have been done to the property (new steps, new landscaping, and a new roof) which might improve the appraised value. But the first step is calling my mortgage company which I dutifully did this morning. The nice customer service rep told me that I will be getting a letter within 15-20 days explaining if it could be removed and/or the process to go about doing so. And with any luck, I will not be paying that nasty PMI for very much longer and can devote that money into paying off other debts and/or investing for retirement.

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