PMI is treated like the plague around here. I agree that if you can avoid it, do so. However, I think paying PMI is still better than renting in some instances.
My city's rent for a 3 bed 2 bath apartment is going to be $1200ish a month with nothing included.
Average 3 BR 2 bath home/townhome runs between $120,000-$150,000. Calculate in taxes, insurance, and PMI with a 3.5% down payment on a 30yr mortgage and the payment will be around $1,050.
Most people aren't able to save up $30,000 (20% DP on $150,000) while also paying that $1,200 a month in rent. PMI should be removed ASAP, however seeing it as a deal breaker given the alternative is something I'd have to pass on. If the situation was right everything else considered (work, family, specific home) I would go for it.
Edit: With FHA loans refi to conventional when you have 20% equity because PMI is for life of the loan.
Submitted May 20, 2019 at 08:04AM by HammyFresh http://bit.ly/2WZzqJS
