Private Mortgage Insurance (PMI) can add $100-300 to your monthly payment. Learn how to get rid of it and save thousands.
What is PMI?
PMI protects lenders if you default. Usually required when down payment is less than 20%.
When Can You Remove PMI?
- Automatic removal when equity reaches 22% (loan-to-value 78%)
- Request removal at 20% equity (LTV 80%)
- Must have good payment history (usually 12 months on-time)
How to Remove PMI
- Check your current equity using appraisal
- Contact your mortgage servicer
- Submit request in writing
- Pay for appraisal if required
- Confirm removal in writing