Say Goodbye to PMI and Save Big on Your Mortgage!
Learn How to Remove Private Mortgage Insurance and Lower Your Monthly Payments Today
What is PMI and Why Should You Remove It?
Private Mortgage Insurance (PMI) is an insurance policy that protects lenders if a borrower defaults on their mortgage. Typically, if your down payment was less than 20% when purchasing your home, your lender required you to pay PMI as part of your monthly mortgage payment. While PMI helps you qualify for a mortgage sooner, it can significantly increase your monthly housing costs.
Removing PMI can save you hundreds of dollars each month, freeing up cash for other priorities — whether that’s home improvements, investments, or simply building your savings.
Benefits of Removing PMI
Significant Monthly Savings
By eliminating PMI, you immediately reduce your monthly mortgage payment. Depending on your loan size, this can translate to savings of several hundred dollars every month.
Increased Home Equity Access
Removing PMI often coincides with having at least 20% equity in your home, meaning you’ve paid down enough of your mortgage or your home's value has increased. This stronger equity position can give you more financial flexibility and options.
Improved Credit Opportunities
Without PMI payments, your debt-to-income ratio improves, potentially making it easier to qualify for other credit like car loans, personal loans, or even refinancing your mortgage at better rates.
Simplified Mortgage Statements
Your mortgage payment becomes more straightforward, as it will no longer include the additional PMI premium, making your finances easier to manage.
Increased Property Value Appreciation
Since more of your monthly payment goes directly toward principal and interest without the PMI portion, you accelerate building equity, which benefits long-term wealth growth.
Empowerment Through Knowledge
Understanding PMI and the removal process puts you in control of your mortgage and financial decisions, enabling smarter homeownership.
How to Qualify for PMI Removal
To qualify for the removal of Private Mortgage Insurance (PMI), you generally need to demonstrate that you have built sufficient equity in your home—typically at least 20% of the original purchase price or the current appraised value. This means either you have paid down enough of your mortgage principal or your home’s market value has increased significantly. Additionally, lenders usually require that you have a good payment history, meaning no recent late payments or defaults on your mortgage loan. Some lenders may also require an updated home appraisal to verify the property’s current value before approving PMI cancellation. It’s important to check with your lender for their specific guidelines and processes, as requirements can vary. Meeting these criteria empowers you to reduce your monthly housing costs by eliminating unnecessary insurance premiums.
Steps to Remove PMI
To remove PMI, start by checking your current loan balance and estimating your home’s market value to confirm you have at least 20% equity. Next, contact your lender to inquire about their specific PMI removal process and requirements. Often, lenders will require a professional home appraisal to verify your property’s value, so be prepared to schedule one. Once you have the appraisal report and all necessary documents, submit them to your lender for review. After the lender verifies your eligibility and approves the removal, your PMI charges will be taken off your mortgage payment, resulting in immediate savings.
Frequently Asked Questions About PMI Removal
A: Yes, under the Homeowners Protection Act, lenders must automatically remove PMI once you reach 22% equity based on the original loan amount. You can request removal earlier if your home’s value has increased.
A: You may need to continue paying PMI until you’ve reached the required equity through principal payments, or consider refinancing if rates are favorable.
A: No, removing PMI does not affect your credit score and is generally a positive financial step.
A: Yes, refinancing to a new mortgage with at least 20% equity can eliminate PMI.
Ready to Stop Paying PMI and Save Money?
Don’t wait to lower your monthly mortgage payments. Contact our experts today for a free consultation and learn how you can qualify for PMI removal fast and hassle-free.