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 txaggie
Joined: 21 Jul 2007
Posts: 1
1.72 Dollars($)
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 Posted: Sat Jul 21, 2007 12:35 pm Post subject: Loan to remove PMI? |
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Some background...
I bought my first house in on 03/10/2005
Original principle balance: 124,987.00
Current balance: 115,234.15
Rate: 4.99%
Current required payment: $1,043.14
Currently I pay: $1,243.14
I need to bring my balance down to $99,989.60 in order to remove the PMI of $50 per month. At the current rate I am paying on the mortgage, I will be down to $99,829.09 in August 2010.
I have been contemplating taking out a loan or home equity line of credit on the house to pay the loan down to remove the PMI....is this wise? What are my loan options in order to remove this? Any advice would be greatly appreciated. |
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miller_st
Joined: 17 Jan 2007
Posts: 917
168.84 Dollars($)
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| Posted: Sat Jul 21, 2007 2:16 pm Post subject: |
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How much equity in the house at present Txaggie?
You need to compare the advantage you will have by taking another loan over continuing to pay PMI on this present mortgage for another couple of years.
On a new loan you will have to make payments, if you invest that money into your current mortgage payments then you can bring down the balance on the loan much faster. Plus the rate on your present mortgage is relatively low, which will not be so for the second loan you will take.
Miller |
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Niicss
Joined: 03 Oct 2005
Posts: 1287
Location: New Jersey
193.02 Dollars($)
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| Posted: Sat Jul 21, 2007 4:59 pm Post subject: |
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| Quote: | | I have been contemplating taking out a loan or home equity line of credit on the house to pay the loan down to remove the PMI....is this wise? |
I too think it would be better to invest the money you would be paying on your second loan (if you were to take one) into this present mortgage to help reduce the mortgage balance faster. You are investing $200 extra and if put in more amount then mortgage balance will get reduced even faster.
_________________
Good is the Enemy of Great. |
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rolberg
Guest
0.10 Dollars($)
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| Posted: Sat Jul 21, 2007 7:34 pm Post subject: |
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If you have the financial means then put the same amount which you would have to pay on the second mortgage as additional payments for this mortgage. This way instead of August 2010 the loan balance will come down to the required level much faster without the need to acquiring another loan on the house.
There would be other costs involved with getting the second loan and if you calculate then there won't be much gain in taking out a second instead of putting the additional funds into the first mortgage for faster pay down. |
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