LLC Question - dropping PMI

[Tom Horan]

Hi folks - 

We have a property that we currently pay PMI on (first home 2.5 years ago). This summer we should be in a good position to drop PMI as we are likely between 75-80% LTV.

We're also looking to open an LLC for this property and get it out of our names.

Is there any reason why one should be done before the other? I wouldn’t think it would be a big deal either way, but want to check in with my BP people.

Thank you in advance! 

[Alex Deacon]

@Tom Horan its an easy process to change to an LLC but I know in Pittsburgh PA we have to pay transfer tax which can be quite expensive depending on the price of the property and if its in the City of Pittsburgh or not. Also most lenders will not allow this so you will need to refinance the loan. The process is not hard but it can be expensive.