Success Story: A Simple Phone Call Saved Sarah $3,000 Every Year

Woman in kitchen with laptopAdditionally, 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.