Track PMI

If you’ve already been paying PMI for a few years, then it is time for a quick  check.  Most lenders don’t consider important parts of killing PMI:  market appreciation, inflation and home improvements.  All the factors combined can help cancel PMI sooner and save thousands of dollars.
Here are two examples that show LTV – one considering just principal payments and the other considering principal payments, estimated home value appreciation and estimated value of improvements.  Without home improvements or appreciation, it will take over 6 years and over $6,300 of PMI for a $250,000 home with 10% down to reach a 78% loan to value (LTV) ratio and qualify for automatic cancellation of PMI.
In the second example, with $7,000 improvements and 2% annual local market appreciation, PMI can be waived in about 3 years and cost less than $3,300.  THAT’S ABOUT A $3,000 DIFFERENCE IN PMI COST!!!