If you purchased a home with less than 20% down, you’re likely paying Private Mortgage Insurance (PMI). Here’s how you can remove it:
1. Pay Down Your Loan to 80% Loan-to-Value (LTV)
Once your loan balance reaches 80% of the home’s original value, you can request PMI removal from your lender.
2. Request an Appraisal for Home Appreciation
If your home’s value has significantly increased, an appraisal could prove that your equity has surpassed 20%, making you eligible for PMI removal.
3. Refinance Your Loan
If interest rates are favorable and your home has gained value, refinancing could eliminate PMI and lower your payments.
4. Check Automatic PMI Cancellation
Lenders are required to cancel PMI automatically once your loan reaches 78% of the original home value, even if you don’t request it.