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.