Assuming a $10,000 down payment, that $50,000 gain amounts to a fivefold increase in your investment—not counting mortgage paydown. When your PMI is canceled, you must be informed that: - Your PMI has been canceled, and you no longer have private mortgage insurance - You no longer have to pay premiums for your private mortgage insurance. The West was the only region to mark price gains in 2006, with houses selling for 0.4% more than in 2005. Trim Your Inventory OK, so you can't go to a "just-in-time" inventory management system like many larger manufacturers. There are usually other requirements as well, such as no late payments in the year before you request cancellation, and no other mortgages or liens against your property. If instead, you had put $10,000 or $20,000 into, say, a home in boom-towns like Portland, Austin, Boston, Seattle, San Francisco, Park Cities, Denver, Boulder, Sarasota—or any one of dozens of other hot housing market cities—you would have enjoyed a tenfold (or greater) increase in your original down payment investment. Recall, for example, that at the end of 1965 the Dow (ones Industrial Average (DJIA) stood at 969.26. Trim Your Inventory OK, so you can't go to a "just-in-time" inventory management system like many larger manufacturers. But I'm surprised at the number of ways entrepreneurs do manage to borrow. You should know that you can renegotiate your mortgage at a lower rate with your present lender. I've received bills from businesses offering discounts of 1% or 2% for payment within 10 days. For subsequent years, you’ll pay it along with your monthly mortgage payment. For example, in the relatively slow growth town of Gainesville, Florida, a home bought in 1993 for $100,000 could have been sold in 2000 for $150,000. If instead, you had put $10,000 or $20,000 into, say, a home in boom-towns like Portland, Austin, Boston, Seattle, San Francisco, Park Cities, Denver, Boulder, Sarasota—or any one of dozens of other hot housing market cities—you would have enjoyed a tenfold (or greater) increase in your original down payment investment. The actual PMI percentage depends on the default mortgage rate in your state. Like many other things about buying a new home, the rules surrounding private mortgage insurance can be confusing. What does my mortgage lender have to tell me? When you close on your house, you must be informed of: - the date that you can request cancellation of PMI - when your PMI will be automatically terminated. There are specific rules that mortgage lenders must follow if you signed (or will sign) a mortgage after July 29, 1999. When you pay less interest each year, then there is less available to deduct from your income taxes. Is it wise to refinance a larger amount than what your present mortgage is. If the mortgage was considered a high risk loan, it can be when you reach 77%. In fact, over the long term, fewer than 2 percent of professional fund managers have been able to consistently earn after- tax returns on stocks of more than 10 to 15 percent a year. While some markets did show price gains, even double-digit price gains, the rest reported price deceleration or flat growth. That's why even a lowly 4 percent annual rate of appreciation will nearly always outperform form the price gains you might get from stocks. Good for my bottom line; good for the business's cash flow. You should know that you can renegotiate your mortgage at a lower rate with your present lender.