Most of you who have a loan on your home are paying Private Mortgage Insurance (PMI) with your payment. This is a fee the Mortgage Company charges to cover them if they have to foreclose. You do not have to pay this fee if you have 20% equity in your home. It generally ranges from $50 to $125 per month. Right now, if you earn under $100,000 you can deduct this expense from your taxes. For most homeowners who pay on time, this is a very frivolous cost. The money spent on PMI could be going toward the principal on the loan. There is usually a date when the Mortgage Company is set to remove the charge, which is 8-10 years down the road. What they do not factor in is the fact that properties in San Angelo have moved up in value. A typical loan that is 3 years old could already be within that 20% equity range. Do you think your lender will inform you of this? The answer is NO! It is up to YOU to keep up with this. Please give me a call if you would like to discuss the value of you home. You might be in a situation to remove this crazy fee!
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