Did something similar myself a couple years back, and yeah, it can definitely pay off. My appraisal ran closer to $500, but PMI was killing me at around $150/month, so it didn't take long to come out ahead. One thing I'd add though—make sure you're reasonably confident in your home's value before pulling the trigger. A friend of mine jumped too soon and ended up just shy of the 20% equity mark...ouch. Timing (and a bit of luck) goes a long way here.
Yeah, good points there. PMI can really feel like throwing money away each month, especially when you're close to that 20% mark. I've seen plenty of folks jump the gun a bit early and end up frustrated—your friend's experience isn't uncommon, unfortunately. Appraisals can be tricky too; sometimes they come in lower than expected, even if you've done your homework.
One thing I'd suggest is keeping an eye on recent sales in your neighborhood. If you see homes similar to yours selling at solid prices, that's usually a decent indicator you're in good shape. But like you said, timing matters a lot here...and there's always a bit of luck involved. Glad it worked out for you though—it's always satisfying seeing clients finally ditch that monthly PMI payment.
"Appraisals can be tricky too; sometimes they come in lower than expected, even if you've done your homework."
Yeah, this part right here is exactly why I'm still on the fence about pulling the trigger. I've seen neighbors get burned by overly optimistic appraisals—one even spent weeks sprucing up their place only to have it valued lower than before (ouch). Personally, I'd rather wait a bit longer and be absolutely sure I'm clear of that 20% line... patience sucks, but so does paying for PMI month after month.
patience sucks, but so does paying for PMI month after month.
I totally get the hesitation. A couple years back, I thought I'd nailed my appraisal after spending a weekend repainting and landscaping. Appraiser barely glanced at the upgrades and came in way lower than expected—felt like a gut punch. Honestly, PMI is annoying, but rushing to ditch it can backfire if the appraisal gods aren't smiling your way. Waiting until you're comfortably past that 20% mark might save you some serious frustration down the road.
"Honestly, PMI is annoying, but rushing to ditch it can backfire if the appraisal gods aren't smiling your way."
Yeah, that's definitely something to think about. But here's another angle—have you looked into making extra principal payments instead? I know PMI feels like throwing money away each month (been there, felt that), but if you focus on paying down the principal faster, you'll hit that 20% equity mark sooner without relying solely on appraisal luck.
Here's a quick breakdown of how I've seen it work for others:
1. Check your mortgage statement or lender's site to confirm how extra payments are applied—make sure they're going straight toward principal.
2. Even small additional payments each month can shave years off your loan and speed up equity building.
3. Once you're confident you've crossed that 20% threshold, request a fresh appraisal or see if your lender offers an automatic PMI removal process.
Just curious though...have you run the numbers to see how much you'd save overall by accelerating payments vs. waiting out the PMI? Might be worth crunching those numbers first before deciding either way.
