The True Cost of PMI: Why You Should Pay Down Your Low-Interest Mortgage
2024-12-24
The author achieved a guaranteed 10.66% return by paying down their low-interest mortgage to eliminate PMI (Private Mortgage Insurance). The article analyzes the trade-offs between paying down a low-interest mortgage and investing, highlighting that while low-interest rates offer modest returns, the cost of PMI is significant. The author calculated a 10.66% effective return on eliminating PMI, exceeding most investment returns. Readers are encouraged to perform their own calculations to assess the value of prepaying their mortgage.