Updated about 12 years ago on . Most recent reply
PMI versus Income Property
My husband and I need advice. We are interested in becoming landlords. We purchased our first home in Dec 2012 with an amazing interest rate and 3% down. Our plan was to stay in the home for a few years and then rent it out. Our plans were expedited when my husband's job relocated us to Chicago. We have rented our home to a 3 year renter. We are eager to buy another rental property. Unfortunately, since we only put 3% down on our home, we are paying PMI. My husband and I are odds as to what to do. I want to take 20% and purchase another rental home for 100K or less, he wants to pay whatever necessary to eliminate the PMI. Currently the renter is paying the PMI and after 3 years of renting, I believe our house will have enough equity to request that the PMI be waved/removed. However, he believes it will be less riskier to pay off the PMI now. Any advice would be greatly appreciated. Thanks!