Additionally, interest rates had risen slightly so there was reason to be concerned that the higher interest rate would offset any monthly savings achieved by eliminating the monthly mortgage insurance.
I thought she was a little overzealous at first since she bought the house for $225,000 in 2010, but after checking with my appraiser, it actually looked possible. I ran the numbers, and even with higher interest rates, Sarah would save $250 per month. With no guarantee of the value of the house, Sarah decided to roll the dice and pay for an appraisal anyway, and it paid off in a big way. The house appraised for $300,000, which was more than enough to completely eliminate the monthly mortgage insurance.
Sarah made a 10-minute phone call that will save her $3,000 per year (plus whatever interest she earns on that $3,000) for as long as she keeps that mortgage.