Should I get rid of PMI on my home, or invest the funds in a Roth IRA?

Get rid of the PMI -- get as much equity in your home as you can and then save the same amount each month that you would have been paying in PMI -- invest that money in whatever retirement program would work the best for you at your age. Here's a tip no mortgage lender will tell you -- if you pay off your mortgage and own the roof over your head, everything else you need to do financially in your life becomes so much easier and less stressful. Even high property taxes can usually be handled IF you own your home. It is the single smartest thing you can do for yourself and your family...

i like bananas, mangos are sweet, i like pu-piuh, but nothing can beat the sweet love of GOD!

-wanda joubert

What?? Get rid of the PMI and invest funds in a Roth.... One you have the PMI off the mortgage, you can devote monthly payments to a Roth, then you're rollin'!

The PMI does you no good, it just guarantees the lender will be paid if you default. If you have enough equity, you can request that PMI be canceled. You can do what you please with the money you will no longer be paying.

too little information,say what.

Classic question---- if you have money on hand--- should you use it to lower bills or save for yourself...

personally my answer---- why not do both. split the money 50-50. Both are very important for your financial goals.

If you use some money to start your ROTH, maybe it will motivate you to do it regularly (i always urge friends and fam to try to use auto invest options right from your bank)

also- by putting some of the money to pay off principal on your mortgage, you will be that much closer to eliminating PMI-- which hopefully will motivate you to work towards this as well.

Alot of little changes will add up big over the long run, hopefully for the size of your IRA and benefit of your mortgage.

As an aside---- what a great time to invest, market is way off its highs-- last year was volatile, but indices are still positive. This year starting off rough means a great time to buy in.

Good luck!

Well, I don't pay PMI because I have two separate loans instead of one loan on my home, so you can achieve the goal of eliminating PMI without having the 20% (is it?) equity in your home.

I think it would depend on how much interest you pay on your mortgage insurance, and how much interest you would receive in a Roth IRA. Also, what are the tax implications of each choice-how much money would you save on taxes.

Also, if you later want to/need to access these funds, which choice will let you do so with the least penalty.