You have looked forward to eliminating this expense since your first mortgage payment. Instead of waiting for your mortgage servicer to remove it, consider a mortgage refinance which may offer the following benefits:
If your monthly mortgage payment includes PMI, consider refinancing to eliminate the expense when you have 20 percent equity in your home. You may benefit from refinancing a FHA loan to one that offers a lower rate and better terms. Refinancing your loan can help you to eliminate the PMI requirement more quickly.
Loan-to-value (LTV) is a common way to determine the equity you have in your home. To calculate this percentage, take your current loan balance divided by the current value of your home. Subtract the LTV percentage from 100 percent to get the percentage of equity you have in your home.
For example: Your loan amount is $320,000 and your home is valued at $400,000. Therefore, your LTV is 80 percent and your equity is 20 percent.
$3 here and $10 there may not seem like much, but over time these fees will take large chunks out of your hard-earned cash.
Emergency fund or new opportunities? We’ll help you decide how much money to keep in savings.
Mortgage bankers encounter unique complications when dealing with natural disasters.