Posted on: 24th Mar, 2011 07:15 am
I am shopping around for a mortgage and one of the brokers offered the option to pre-pay the PMI since I am only putting down 10%. This allows you to basically avoid the monthly PMI cost by pre-paying it in the closing costs. In my situation, I would break even in 2.5 years by pre-paying instead of potentially paying PMI for 7 years based on the amortization schedule. Based on my earnings, I am not able to deduct PMI payments. I also don't think it is likely my house will appreciate enough to drop the PMI in less than 2.5 years. Is this a good option?
Hi joshuan,
If you can affords to pre-pay the PMI, then I think it will be a good option for you. It will help you in getting rid of the PMI within 2.5 years. So, I will suggest you to go for it.
If you can affords to pre-pay the PMI, then I think it will be a good option for you. It will help you in getting rid of the PMI within 2.5 years. So, I will suggest you to go for it.
Yes, it is a good option.
