Are you looking to remove PMI from your mortgage?

According to the National Association of Realtors, the median list price for homes is $232,000. If you have PMI of 1% that means you would have an annual private mortgage insurance (PMI) cost of $2,320, or $193 per month.

That's a lot of money!

More people should think about removing PMI, as this money could be put towards a retirement account, funding an emergency fund, paying off debt, and more.

If only I could rewind the last seven years and listen to my own advice!

In 2009, me and my husband bought a house but didn't have 20% down. We were taking advantage of the low housing prices and the first time homebuyer's tax credit.

One thing we didn't much think about was mortgage insurance and how much it would affect us.

Yes, we're human, and we made a mistake. While we no longer own that home (we are full-time RVers now), we do wish we would have found a way to not pay mortgage insurance. [Read more…]

Earlier this year, I published the post Is Being House Poor Limiting You? While no one ever thinks they will fall into being house poor, it does happen to some. Due to this, when asking yourself the question “how much home can I afford,” it's best to think about ALL of the expenses that go into homeownership.

There are many “hidden” costs that go into homeownership that many do not think about when buying a home. While some homes may seem affordable, there are many factors and expenses to think about.

According to recent data from Zillow:

• U.S. homeowners on average spend more than $9,000 per year in hidden homeownership costs and maintenance expenses
• U.S. homeowners pay an average of $6,042 per year in unavoidable hidden costs: homeowners insurance, property taxes and utilities
• U.S. homeowners pay an average of $3,435 per year in annual optional costs including house cleaning, yard care, gutter cleaning, carpet cleaning, and pressure washing.

That’s a lot of extra money each year that many homeowners do not realize that they may need to pay for.

By not knowing about these costs, a person may become stressed due to the amount of debt they may rack up from being house poor. It may also delay retirement, lead to a house being empty (there might be no money left to decorate), and more.

There are things you can do though so that you can make sure you don’t fall into a house poor situation, though. When pondering the question “How much home can I afford,” think about the many tips below. [Read more…]