Step 26 of The Financial Fitness Bootcamp Course

Karen coauthor of our financial book writes,

“Did you know that many people are paying a monthly payment of anywhere between $50 – $400+ per month for insurance that doesn’t even benefit them?

Yep, it’s called private mortgage insurance or PMI. This insurance benefits your lending institution if you default on your loan.

If you have bought or refinanced a home and put less than 20% down on it, you are most likely paying PMI.

PMI is wrapped up in your mortgage payment so many people don’t even realize they are paying it.

The bad news is that PMI is required for those who don’t put 20% down on their home when they purchase it.

The good news is that the bank is required to stop charging you in certain circumstances.

Many situations can make it possible for you to cancel your PMI. Please read this post for more information.”

Anita writes,

”I was once a landlord for multiple manufacturer homes situated on one lot.

We received discounted rent for: collecting rent, doing simple repairs, mowing the lawn, shoveling the drive, etc. This shaved about $400 off our rent each month.

Further, when the cable guys came for the install (back when we were still paying for cable) and the internet installers came, we were able to get permission to share the internet and cable with our neighbors because they lived within 500 feet of us.

We split these two bills which shaved another $55 off our monthly expenses.

We have since been landlords again and our tenants received discounts for things like mowing the lawn, sharing the internet, improving and repairing the structure, and for paying for a few months in advance.

Often landowners appreciate not having to hire out the work and if they can get a better deal by tenants offering to do needed services, it not only saves them time but money.”

Arranging rental discounts in this manner is often a win-win for both parties.

So Challenge #26 depends on your situation:

If you have a mortgage, look into whether you are paying PMI.

If so, do the research (you can read this post for further info on how to cancel PMI.) to figure out whether you may qualify to get it canceled.

If you are renting, ask your landlord for a discount for paying early, helping around the property, shoveling the walks, mowing the lawn, signing a longer lease (if appropriate), and/or see if you can share the internet/cable with other trusted tenants, etc.

Since we are trying so hard to cut extra expenses, canceling PMI or getting discounts on rent could be great options that would put an extra $50-$400+ back into your wallet.