Thursday, April 17, 2014

News from the housing trenches.

I met with my property manager today and gave her the keys to the rental. You know all I want to do is grill her for information because I can't figure out the market at all. And that freaks me out because I don't believe any of the stories I read. I believe you have to be in the market to know what exactly is going on in the market. And well... joy! That's me. (said in the most sarcastic way)

I'm trying to figure out what is going on with prices because I need to get my house appraised so I can get PMI off. Prices to me looked to be sagging after last October. So I was really nervous. I didn't think I was going to have to do so much work. I'd planned to get it appraised the end of Feb., so every month I was feeling like it was less and less likely for my place to appraise well.

So, I'm asking her a lot of questions about the market. I have to tell her about my PMI because I'm signing a contract with her to rent it. She's also a realtor, and I'm asking question like I want to sell. And hell - maybe I do. But I've got that low interest rate now. It will be interesting to see what happens to the accidental landlord demo because of those low rates. Anyway...

Then she casually dropped a bombshell on me. She said - oh, and you've heard about the new loans? PMI never comes off. I was so shocked that I had to ask her again. You mean that once you get enough equity, they wont let you remove PMI? Yes - she confirms.

Holy shit people. You better start saving your  pennies for a 20% down payment. Paying PMI is one of those things that nags at you. It's like throwing money away every single month. You put up with it because you know if you pay the loan down enough, they will remove it eventually. If that doesn't happen anymore - that really sucks.

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