Consumption and Real Estate
Should I remove a line of credit mortgage repayment mortgage my PMI?
My husband and I are currently paying PMI (private mortgage insurance) on our mortgage. (We did not get a second mortgage.) I know that we need twenty percent equity in order to eliminate PMI, but I do not think we quite there. Is the inclusion of a line of credit mortgage to repay the mortgage was a good idea? I realize that we have now two loans would be paid, however, the PMI would be removed and all our payments (less interest) is not on the loan to go to an insurance company. Is it possible to obtain a credit line mortgage 6%?
i don’t thing this is a good idea to take home equity line in order to pay your first mortgage. you will end up with higher payment- interest rates on equity lines are more then 8.25%- maybe you can get lover rate for a couple of months and in order for you to pay principal on this loan , you need to pay more, then your monthly payment ( it’s working like credit card- min. payment cover only the interest) why don’t you call any appraisal and ask about value check on your house? i agree with the answers before me to rather pay ore towards your principal on your mortgage.