Save $$ on Your Mortgage- Part 2- Don't Pay for Something You Don't Need

Mortgage Insurance

Are you currently paying for something you don't need? Throwing money out the window?  If you have more than 20% equity in your current home, & are paying Mortgage Insurance on your loan- you are wasting your money.

What is Mortgage Insurance?

Mortgage insurance, also known as Private Mortgage Insurance (or PMI), is extra insurance most lenders require from buyers who are purchasing with less than a 20% down payment. This insurance protects the lender if the buyer defaults on the loan. PMI allows buyers to have more buying power when purchasing a new home.

Mortgage Insurance can add $50-100-150+++ per month to your payment. If you have more than  20% equity built up into your home, this is an expense you do not need to pay.  

Contact your lender to find out your balance. If you have more than 20% equity, you can request to have the mortgage insurance removed. Most lenders will require this in writing. You will need to have had a good payment history, with no late payments. Once you reach 22% equity, this should automatically be removed, however its always best to check with your lender to make sure it is removed as it should. No sense in paying for something you don't need!

Hope you found this information helpful to save you some $$.

 :)