Enjoy Magazine - January 2019 January 2019 Issue | Page 12

PMI REMOVAL
Don’t Pay More
than you have to
by Chrystal Caruthers
If you bought a house with less than 20 percent down payment, chances are you pay a
monthly private mortgage insurance fee. It may not be that expensive, a couple of hundred
dollars a month, but that adds up. And since private mortgage insurance isn’t tax deductible,
it’s a fee with few benefits. Well, it benefits the bank. Private mortgage insurance guards the
bank in case you default on your mortgage. But you have rights. The Homeowners Protection
Act allows homeowners of single-family primary residences who closed after July 29, 1999, to
remove PMI from their mortgage payment after certain conditions have been met. There are
a few ways to remove PMI from your mortgage payment. Some easier than others. In the end,
however, it’s worth it to explore your options and reduce your payment when you can.