Long time follower of the blog, forum, and now new EM attending. Thanks for taking the time to read this thread. I'll try to keep it succinct.

Bought house for 240K in 2015. 5% Down. PMI payment $1200/yr. 30 year loan. Owe 214k. Interest rate 3.7%. Lets be conservative (and realistic in my market) and assume no to minimal appreciation

Question: Is paying down enough principal to cancel PMI a poor investment?

78% of 240k is 187k, so I would propose making a principal payment of 27K, which would cancel PMI.

at 3.7%, plus cancellation of PMI at $1200/yr, with a 27K principal payment I'd be looking at saving about $2200 per year, or an 8.1% annualized return, on that $27K payment.

Am I totally off base here? For what it's worth, we have paid off student loans. Only debt is this silly house (don't buy a house as a resident!) and 20K on her car at 1.9%. Net income including spouse (after taxes, health insurance for both of us, and her (crappy employed 401k) and mine (solo 401k maxed) contributions) is about 20K/month.

As a new attending, this would be a relatively large cash outlay, hence the debate and wanting to make sure I'm assuming correctly.

Again, thank you, and I hope someone will be so kind as help guide me to the right decision.

Bought house for 240K in 2015. 5% Down. PMI payment $1200/yr. 30 year loan. Owe 214k. Interest rate 3.7%. Lets be conservative (and realistic in my market) and assume no to minimal appreciation

Question: Is paying down enough principal to cancel PMI a poor investment?

78% of 240k is 187k, so I would propose making a principal payment of 27K, which would cancel PMI.

at 3.7%, plus cancellation of PMI at $1200/yr, with a 27K principal payment I'd be looking at saving about $2200 per year, or an 8.1% annualized return, on that $27K payment.

Am I totally off base here? For what it's worth, we have paid off student loans. Only debt is this silly house (don't buy a house as a resident!) and 20K on her car at 1.9%. Net income including spouse (after taxes, health insurance for both of us, and her (crappy employed 401k) and mine (solo 401k maxed) contributions) is about 20K/month.

As a new attending, this would be a relatively large cash outlay, hence the debate and wanting to make sure I'm assuming correctly.

Again, thank you, and I hope someone will be so kind as help guide me to the right decision.

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