Are you paying PMI?

Discussion in Mortgage & House Payments started by novasparker • Sep 21, 2012.

  1. novasparker

    novasparkerActive Member

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    We've been paying PMI for a few years now. At the time we took out the loan, I didn't think much of it. Now years later, still seeing it on there. It makes me wish I would have saved for the down payment.
     
  2. biddyb

    biddybNew Member

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    Anybody who wants to escape PMI has to make a 20 percent downpayment. If the purchase price is $250,000, then the downpayment alone is a whopping $50,000. How many people have that kind of money saved towards home purchase? This was the reason why lenders got creative a few years back and started doing the 80/20 loans, whereby a buyer could borrow 2 loans for purchase and didn't have to worrry about downpayment money. This lead to a lot of foreclosures as you well know. Just hang in there. PMI will disappear when you gain 20% equity in your home. Nobody knows when this will occur, but it will eventually.
     
  3. jleadbet

    jleadbetActive Member

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    We are in the same boat. Our PMI didn't look like much when we took the loan, but once you've paid it for a few years, it starts to get annoying. Particularly when you add the house being underwater to the mess. I really wish we had saved up the 20%. Live and learn. We'll never be doing that again.
     
  4. ryels

    ryelsNew Member

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    Our PMI dropped off a couple years ago and it made a big difference. I think we are paying $80 less each month, which is significant for us. You can do a lot with an extra $80.