Omaha, NE · Member since 2020 · 611 posts · 665 votes
5y
Even if you could prepay the PMI, why would you? If you get to the 20% mark faster than the amortization schedule calls for, you'll drop the PMI sooner, so if you had extra money, it would be better to put it toward principal.
Better than that, use extra money to buy an asset. The extra cash you make from the asset will not only cancel out any PMI, but it will improve your current and future wealth picture.
(If you have an FHA loan, scratch the above. You have to refinance out of PMI.)
Lender · Nationwide Lender · Member since 2019 · 391 posts · 140 votes
5y
@Brad Fallon
I know from experience that when refinancing you are able to do a one time premium for the MI. It can be financed into the loan as well. It may need to be at a certain LTV however. If you want to follow up with me Monday feel free to reach out.