We've been paying PMI for a few years now. At the time we took out the loan, I didn't think much of it. Now years later, still seeing it on there. It makes me wish I would have saved for the down payment.
Anybody who wants to escape PMI has to make a 20 percent downpayment. If the purchase price is $250,000, then the downpayment alone is a whopping $50,000. How many people have that kind of money saved towards home purchase? This was the reason why lenders got creative a few years back and started doing the 80/20 loans, whereby a buyer could borrow 2 loans for purchase and didn't have to worrry about downpayment money. This lead to a lot of foreclosures as you well know. Just hang in there. PMI will disappear when you gain 20% equity in your home. Nobody knows when this will occur, but it will eventually.
We are in the same boat. Our PMI didn't look like much when we took the loan, but once you've paid it for a few years, it starts to get annoying. Particularly when you add the house being underwater to the mess. I really wish we had saved up the 20%. Live and learn. We'll never be doing that again.
Our PMI dropped off a couple years ago and it made a big difference. I think we are paying $80 less each month, which is significant for us. You can do a lot with an extra $80.
