Recently, while reviewing the general finances of a couple different Teammates we found they were paying a pretty big unnecessary expense…PMI (Primary Mortgage Insurance). In both cases, they had purchased their homes around 2018-2019 with low money down as first time home buyers (ex: 5-10%). If you don’t put at least 20% as a down payment, you will likely be required to pay mortgage insurance. One Teammate was paying $183/month for PMI and the other was paying $126. In both cases, they probably could have stopped paying it at least 3 years ago (post-COVID, housing values soared)! In this example, $183 x 36 months = $6,588, they could have kept in THEIR bank account or invested instead of wasting it on insurance they didn’t need to be paying for. Obviously, we had both Teammates contact their lenders right away and begin the process to remove that PMI ASAP! As financial planners, we want to help you look at ALL things related to your personal finances and help you become as efficient with your dollars as possible. Just think…what other unnecessary expenses might you be paying for right now?
CalmWater Financial Network®, 3204 W Benjamin Ave, Suite 200, Norfolk, NE 68701 ~ (402) 371-5511
Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.
This is a case study for illustrative purposes and should not be construed as a recommendation. It may not be representative of your experience.