How to Remove PMI (and Save Hundreds Monthly)

If you put less than 20% down when you bought your home, you're likely paying Private Mortgage Insurance (PMI). This can cost anywhere from $100 to $400 per month—money that does nothing for your equity.

The 80/20 Rule

Once your loan-to-value (LTV) ratio hits 80%, you can often request to cancel PMI. In a market where home values have risen 20-30% in the last few years, you might already be there without paying down a single extra cent of principal!

The Process

1. Contact your lender and ask for their specific requirements for PMI removal.
2. They will usually order an appraisal through their approved panel (unfortunately, you often cannot order it yourself directly, but you can trigger the process).
3. If the appraisal comes in high enough to prove 20% equity, the PMI is removed.

Note: Even if you can't order the lender's appraisal directly, getting a private appraisal beforehand can help you decide if it's worth the application fee to proceed.