Ready to pay off your mortgage? Laura explains who should pay off their mortgage ahead of schedule and who shouldn't. Learn eight ways to get rid of your home loan as quickly as possible—if it’s a smart financial move for you.
Strategy #8: Get rid of PMI
PMI or private mortgage insurance is charged by lenders when you take out a conventional home loan with less than a 20% down payment. But you can request a cancelation after you pay down your mortgage balance to 80% of the original value of the property.
If you have a 30-year fixed-rate loan for $180,000, the PMI could be close to $100 per month. Getting rid of that premium frees up $100 that you could use to pay down your principal instead.
If you're like Christian and have rock solid finances with emergency savings, insurance, consistent retirement contributions, and no debt besides a mortgage, then I highly recommend using these 8 strategies to pay off your mortgage. But if you're not there yet, don't put the cart before the horse.
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