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jodyangel

Mortgage. Insurance

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I received a letter today saying I could request dropping my Mortgage  Insurance policy. What is this? I didn’t even know I had it!

is it wise to drop it?

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1 hour ago, jodyangel said:

I received a letter today saying I could request dropping my Mortgage  Insurance policy. What is this? I didn’t even know I had it!

is it wise to drop it?

Private mortgage insurance protects the issuer in the event that you fail to make payments.  There's no personal value to you; absolutely request the removal.

 

A borrower is eligible to request private mortgage insurance (PMI) removal from their loan once the balance drops to 80% of the original appraised value.  (increase in value since loan origination is ignored)  Your lender is actually requirement to discontinue the insurance once the balance drops to 78% of the original appraisal.

 

You'll see a decrease in your monthly payment when PMI premiums are discontinued.

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Yes that’s what I understand....called Wells Fargo this am. But, I wanted to make sure I wasn’t being taken advantage of Thanks!

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Since you are wanting to pay your mortgage off early, you should add the amount of the interest to your principle payment each month.  Ask WF how.  

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1 hour ago, jodyangel said:

Yes I’m planning on doing this! I’ll be paying an entire extra payment every month! Hope I see the balance coming down quickly!

There are many who do bi-monthly payments specifically to reduce the interest that is accumulating.  Make sure you don't get sucked into some plan that requires you to pay for the privilege of making multiple payments in a month...yes, there ARE outfits that try to take advantage of people in that manner. 

 

Getting rid of the mortgage insurance will leave more money that you can apply to the principal...this will help you clear the mortgage long before the contractual term.  CV has a good thread about their efforts to burn the mortgage YEARS in advance of the expected date...

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I’m not using nor would I use any company to figure out how to pay my mortgage off. No worries there! Since my mortgage payment is dropping and I’ll just have to add like $200 to add to the $800 and pay an entire second payment.  I’m also tossing around the thought of taking my SS at 66 ( May) and continue working for awhile. That way I can still cover hubbys medical insurance!

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On 12/9/2019 at 11:21 AM, centex said:

There are many who do bi-monthly payments specifically to reduce the interest that is accumulating.  Make sure you don't get sucked into some plan that requires you to pay for the privilege of making multiple payments in a month...yes, there ARE outfits that try to take advantage of people in that manner. 

 

Getting rid of the mortgage insurance will leave more money that you can apply to the principal...this will help you clear the mortgage long before the contractual term.  CV has a good thread about their efforts to burn the mortgage YEARS in advance of the expected date...

Where can I find this thread?

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