7 Reasons to Pay Off Your Mortgage Early — Ventura Real Estate

by Gary and Lisa Schoeffler on September 15, 2011

in Latest News

Why Alanis Morissette and island paradises might convince you to bump up your mortgage payments.

1) Pay Less PMI

Most lenders require you to pay private mortgage insurance premiums as long as your mortgage balance is 80% or more of your home’s purchase price. If you pay down your mortgage faster, your balance will dip below 80% more quickly, and you can pocket the cash you’d otherwise have spent on PMI premiums during the normal time period.

Additionally, if your home’s property value is significantly higher when your mortgage balance hits 80% versus when you first bought the property, your lender may require a new appraisal and move your PMI cancellation date out further into the future. If you can get rid of PMI sooner, you may be able to avoid significant market fluctuations and their potential effect on your PMI payments, saving even more money.

Are you in a position to pay off your mortgage early? Here are 7 reasons why it may be a good idea.

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Post by Gary and Lisa Schoeffler

Gary and Lisa Schoeffler are Ventura Real Estate Professionals specializing in residential real estate. Their expertise in helping both buyers and sellers is widely recognized in Ventura County. How can they assist you today? Wondering what the market is like? Call them, they will be happy to talk with you about it. 805-320-4472

Gary and Lisa has written 372 articles.

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