"My lender didn't ask for an appraisal at all—they just checked the payment history and balance, and I was good to go."
You're pretty lucky there. Mine insisted on a full appraisal even though I'd clearly passed the 20% mark. Honestly, it felt like they were just dragging their feet to squeeze out a few more months of PMI payments. Still, even with the hassle, ditching PMI was totally worth it in the long run—saving that extra cash each month adds up quicker than you'd think...
You're definitely lucky with that lender. I've seen clients go through all sorts of hoops just to ditch PMI. Had one couple who clearly hit their 20% equity, but the bank insisted on a full appraisal—then nitpicked every little detail, dragging things out for weeks. But once it was finally done, they were thrilled with the monthly savings. So yeah, even if your lender makes you jump through a few extra hoops, it's usually worth the hassle in the end...
"even if your lender makes you jump through a few extra hoops, it's usually worth the hassle in the end..."
Usually true, but honestly, I've seen cases where the appraisal fees and delays ate up most of the savings. Sometimes it's smarter to just refinance altogether...depends on your situation though.
Good points all around, but honestly I've seen a few situations where refinancing doesn't pan out either. I had a client recently who was dead set on refinancing to ditch PMI, but when we ran the numbers, the new loan terms actually ended up costing more in interest over the long haul. That lower monthly payment looked great at first glance, but stretching out the loan term again wiped out any real savings.
I'd say it's never as clear-cut as just "ditch PMI at all costs." Sometimes those appraisal fees and closing costs really do add up, especially if you're only a few thousand dollars away from hitting that magical 20% equity mark. In those cases, I've found it often makes more sense to just bite the bullet and pay down the balance a bit faster. Sure, it might sting in the short term, but you'll avoid the hassle and uncertainty of refinancing or negotiating with your current lender.
On the flip side, if you're dealing with a high-interest rate loan anyway, refinancing could be a no-brainer. You're already paying closing costs either way, so killing two birds with one stone—lowering your rate and dropping PMI—can be a real win-win.
I guess my point is, there's no universal answer here. You really gotta crunch the numbers and look beyond just getting rid of PMI. Check your long-term goals too—are you trying to lower monthly payments, reduce overall interest costs, or maybe planning to sell in a few years? All these factors can tip the scales one way or another.
"Sure, it might sting in the short term, but you'll avoid the hassle and uncertainty of refinancing or negotiating with your current lender."
Totally agree on running the numbers first—seen too many folks jump into refinancing without realizing those hidden costs. Curious though, anyone had luck just negotiating PMI removal directly with their lender?
