Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!
Asked by
scooby76
1 year ago
Flag this Question
The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.
Let the community lend a hand!
These are the most popular credit card offers from Credit Karma members with credit similar to yours.
See More Credit Cards...
PMI is currently tax deductible. The real disadvantage of it at this point is that it will lower the total amount you can borrow because it will be counted into the figuring of your debt to income ratio - if you're paying $80 a month in PMI, then it's $80 less that you can afford for a mortgage payment, which can work out to about another 14-15k on the loan (going by the current rates around 5%).
dnfield 8 months ago
PMI is Private Mortgage Insurance and is tacked onto your loan payment if your Loan to Value (LTV) is over 80%. The reason why PMI is typically avoided is it is an additional expense that you will have to pay monthly and doesn't count as interest paid, therefore providing no extra tax benefit to you. The way to get around PMI is to split your loan into a 1st and a 2nd, having the 1st mortgage that is 80% LTV, and the second at whatever is remaining. However, the interest rates on second mortgages are so high now, it has become cheaper to pay your PMI.
If you are currently paying PMI and you can get an appraisal high enough to validate that you are below 80% LTV, your lender will remove the PMI payment. You will have to pay the appraisal out of pocket, so you should do your research before paying the appraisal fee.
vendejp 2 months ago
Private Mortgage Insurance. It protects the lender from you defaulting on the loan.
hardeight 2 months ago