Yeah, running the numbers is key—I learned that the hard way! When I bought my first place last year, I was obsessed with ditching PMI ASAP because everyone kept saying it's just throwing money away. But after spending a weekend buried in spreadsheets (my idea of a wild Saturday night, lol), I realized refinancing right away wouldn't actually save me much unless I stuck around for at least three years. With my job situation still kinda up in the air, it didn't seem worth the hassle yet.
Honestly, PMI isn't fun to pay every month, but sometimes it's smarter to wait it out until you build enough equity naturally. Plus, refinancing comes with its own costs and headaches—paperwork overload anyone? 😂 It's definitely not a one-size-fits-all decision. Glad it worked out for you though; gives me hope I'll get there eventually...
I get your point about refinancing headaches and costs, but honestly, PMI drives me crazy. Yeah, spreadsheets on a Saturday night sound familiar...been there, done that, lol. But even if the savings aren't huge short-term, I still think getting rid of PMI sooner can be worth it psychologically. There's just something about paying extra every month for zero benefit that bugs me way more than it probably should. Different strokes, I guess!
Totally get where you're coming from—PMI can feel like tossing money out the window every month. Have you looked into whether your lender allows you to request PMI removal without refinancing? Sometimes, if you've built enough equity (usually around 20%), you can just ask them to drop it. Might save you the hassle and cost of refinancing altogether. Could be worth a quick call or email to your lender to check...might free up your Saturday nights from spreadsheet duty, too.
Have you double-checked how your lender calculates that 20% equity? Some lenders base it strictly on the original purchase price, while others might consider current market value—especially if property values have jumped in your area recently. I ran into this myself with a duplex last year; saved me from refinancing altogether. Might be worth finding out exactly what numbers they're looking at before you dive too deep into the refi rabbit hole...
- Wait, lenders can actually use current market value to figure out equity?
- Didn't realize that... assumed it was always based on purchase price.
- How'd you find out your lender's method—did you just call them directly or...?
