Friday, July 19, 2019
PMI is Gone!!
I finally reached 78%LTV (loan to value) on my home. That means no more private mortgage insurance (PMI) and I cannot be more excited!!! My PMI payments were $115.37 a month. My first payment on this mortgage was on July 1, 2013 and it took me 6 years to reach 78%. I plan to use that $115 a month to save for expected home repairs such as a new AC unit (pretty much a necessity in Florida). I am already paying an extra $448 a month extra in principal each month.
The crazy part is that I reached 78% early. I reached 80% LTV at the end of January 2019. According to my mortgage payment, I was not supposed to reach 80% until September of 2020. . I've already paid thousands for PMI since 2013. Imagine if I followed the schedule put forth by the mortgage company.
The process for reaching 78% LTV was simple. I just paid extra principal payments on my mortgage each month. At the beginning of February I received a letter from my mortgage company advising me that I had reached 80% LTV and giving me options for how to have the PMI removed. Once of which was to pay almost $5,000 to reduce the principal to 78%LTV. I declined to do that and just kept making my extra payments each month. I paid my mortgage as usual at the end of June and got my regular statement. A couple of days later I received a revised statement with the PMI payment removed. I have not yet received any refunds or pro rata refund for my last pmi payment. It appears that it was cancelled by the mortgage company on 7/2. The next premium would have been paid around 7/15. I don't expect any refunds from my escrow account until maybe next year when the escrow analysis is complete.