Recently, the Hubby and I received a letter from Wells Fargo, our mortgage lender, announcing they have cancelled our private mortgage insurance and subsequently have lowered our monthly mortgage payment.
At first, I couldn’t believe it. We hadn’t paid down 77-80% of our original purchase price / appraisal of the house — more like 63%. And, after five years of payments, I don’t think we’ve reached the “180 payments” benchmark either.
But when we received the new mortgage statement this week and saw our monthly payment reduced such that it was actually THREE digits, I wanted to do a big ol’ happy Snoopy dance. Granted, our new payment is only $15 below four digits. But there’s a heckuva big psychological difference between $1,000 and $985.
Damn, it feels GOOD, to see a definite light at the end of the mortgage tunnel.
28 July 2009 UPDATE: DUH… I reread my lender’s letter, and I misunderstood the terms. PMI goes away when 1) the original mortgage amount is reduced by 22% AND 2) we’ve been paying for at least five years — both of which applies this summer. 🙂