If you put the $320 back in the mortgage as additional payment, your loan term will be same 22 years and $1000 less in interest and PMI, also gives you the flexibility to use the $320 towards additional payment or do something else you want. Also no dealing with bank to remove PMI.
Keep in mind: This strategy does not take into account the time value of money. Saving $300/month TODAY is more signficant than saving $300/month years in the future. Why? Inflation makes the purchasing power of $300 decrease as time goes on.
Wouldn't i accomplish the exact same thing by putting 20% down and paying that extra $300/month in additional principle payments? This was there is no initial pmi to deal with and if life hiccups and i need that $300, i can use it for emergency rather than paying it as a requirement to my mortgage.
If you put the $320 back in the mortgage as additional payment, your loan term will be same 22 years and $1000 less in interest and PMI, also gives you the flexibility to use the $320 towards additional payment or do something else you want. Also no dealing with bank to remove PMI.
i hAVE A BALANCE OF 32000 LEFT ON MY HOUSE . WOULD IT A GOOD IDEA DO FINANCE THE 32K AND PAYOFF THE HOUSE
Keep in mind: This strategy does not take into account the time value of money. Saving $300/month TODAY is more signficant than saving $300/month years in the future. Why? Inflation makes the purchasing power of $300 decrease as time goes on.
Wouldn't i accomplish the exact same thing by putting 20% down and paying that extra $300/month in additional principle payments? This was there is no initial pmi to deal with and if life hiccups and i need that $300, i can use it for emergency rather than paying it as a requirement to my mortgage.
Putting a larger down payment on a home isn’t a “trick”. LOL
Did you watch the video? Because that’s not the point.