PMI removal impact

[Suneel P.]

I have a mortgage of 30 years that was taken an year ago and paid 5% down initially. I want to pay down additional amount to remove PMI. What does that do for me? Does it reduce monthly payments or keep the monthly payments same and pay off the amount quicker? And how to find out how much my new payments are going to be? Mortgage servicing company is not helpful to find this info.

[Jay Hurst]

Quote from @Suneel P.:

I have a mortgage of 30 years that was taken an year ago and paid 5% down initially. I want to pay down additional amount to remove PMI. What does that do for me? Does it reduce monthly payments or keep the monthly payments same and pay off the amount quicker? And how to find out how much my new payments are going to be? Mortgage servicing company is not helpful to find this info.

@Suneel P.  You would need to ask your current mortgage servicer if your loan can be "recast". A recast means if you put down a large chunk usually 10k or more at one time you can amortize the new loan over the remaining term which would lower your payment. Most servicers will charge maybe a 250 dollar fee for this.