How to Remove PMI from Your Mortgage in 2025 💰
Save $100-$200/Month | 5 Proven Methods to Eliminate PMI
🎯 Ready to Remove PMI?
If you have 20% equity, you can remove PMI and save $100-$200/month. Get a free home valuation to see if you qualify, or consider refinancing to eliminate PMI permanently.
Check If You Qualify to Remove PMI →💡 What Is PMI and Why Should You Remove It?
PMI (Private Mortgage Insurance) is insurance that protects the lender if you default on your loan. You pay $100-$200/month, but YOU get ZERO benefit. It's required when you put down less than 20%, but once you reach 20% equity, you can remove it and save thousands.
💸 The True Cost of PMI:
- • Monthly cost: $100-$200 ($1,200-$2,400/year)
- • Over 10 years: $12,000-$24,000 wasted
- • Over 30 years: $36,000-$72,000 wasted
- • You get: ZERO benefit (protects lender, not you)
🎯 5 Proven Methods to Remove PMI
Method 1: Request Removal at 20% Equity (80% LTV)
BEST METHOD for most people. Once your loan balance drops to 80% of your home's original value, you can request PMI removal. Don't wait for automatic removal at 78% - request it at 80% to save 2 years of payments ($2,400-$4,800).
How to Calculate Your LTV:
LTV = (Current Loan Balance ÷ Original Home Value) × 100
Example: $320,000 loan ÷ $400,000 home = 80% LTV ✅ Eligible!
Check your mortgage statement for current balance. If you're close to 80%, contact your lender to start the removal process.
Method 2: Automatic Removal at 78% LTV
By law, your lender MUST automatically remove PMI when your loan balance reaches 78% of the original home value (if you're current on payments). However, this takes 2 years longer than requesting removal at 80%.
⚠️ Don't Wait: Requesting removal at 80% saves you $2,400-$4,800 compared to waiting for automatic removal at 78%. Be proactive!
Method 3: Refinance to Eliminate PMI
If your home value increased and you now have 20%+ equity, refinance into a new loan without PMI. This works even if you haven't paid down much principal. If rates have also dropped, refinancing can eliminate PMI AND lower your rate - double savings!
When Refinancing Makes Sense:
- ✅ Your home value increased 10%+ since purchase
- ✅ You can lower your rate by 0.5%+ while removing PMI
- ✅ You plan to stay in the home 3+ years (to recoup closing costs)
- ❌ Don't refinance JUST to remove PMI if rates are higher
Method 4: Get Home Reappraised (Home Value Increased)
HIDDEN GEM METHOD. If your home value increased significantly (hot market, renovations), you may already have 20% equity even if you haven't paid down much principal. Get a new appraisal ($400-600) to prove increased value.
Example: Home Appreciation Removes PMI
- • Original purchase: $400,000 (2022)
- • Down payment: $20,000 (5%)
- • Original loan: $380,000 (95% LTV) - PMI required
- • Current value (2025): $480,000 (20% appreciation)
- • Current loan: $370,000 (paid down $10K)
- • New LTV: 77% ($370K ÷ $480K) - PMI REMOVED!
Cost: $500 appraisal. Savings: $150/month = break-even in 3 months!
Method 5: Make Extra Payments to Reach 20% Equity Faster
Aggressively pay down your principal to reach 80% LTV faster. Every extra $1,000 paid gets you closer to removing $150/month PMI. This is a guaranteed 15% annual return on your money!
Example: Extra Payments Strategy
- • Current loan: $342,000 (85.5% LTV on $400K home)
- • Need to reach: $320,000 (80% LTV)
- • Gap: $22,000
- • Strategy: Pay extra $1,000/month for 22 months
- • Result: Remove PMI 5 years early, save $9,000!
🎯 Calculate Your PMI Removal Options
See if you qualify to remove PMI through refinancing or reappraisal. Compare your options and save $100-$200/month.
Check PMI Removal Options →✓ Free quotes ✓ No obligation ✓ See all options
📋 Step-by-Step: How to Request PMI Removal
Calculate Your Current LTV
Check your mortgage statement for current balance. Divide by original home value. If 80% or less, proceed to step 2.
Contact Your Lender
Call your servicer's customer service and say: "I'd like to request PMI removal. My LTV is below 80%." They'll explain their specific process.
Submit Written Request
Most lenders require written request. Include: loan number, current balance, request for PMI removal, and confirmation you're current on payments.
Order Appraisal (If Required)
Some lenders require new appraisal ($400-600). They'll order it or tell you to order from approved appraiser. Takes 7-14 days.
Lender Reviews & Approves
Lender verifies 20% equity and good payment history. Takes 30-45 days total. Once approved, PMI removed from next payment.
❓ Frequently Asked Questions
How can I remove PMI from my loan?
5 ways to remove PMI: (1) Automatic removal at 78% LTV, (2) Request removal at 80% LTV, (3) Refinance to eliminate PMI, (4) Get home reappraised if value increased, (5) Make extra payments to reach 20% equity faster. Most common is requesting removal once you reach 20% equity (80% loan-to-value).
When does PMI automatically fall off?
PMI automatically terminates when your loan balance reaches 78% of the original home value, as long as you're current on payments. However, you can request removal earlier at 80% LTV (20% equity). Don't wait for automatic removal - request it at 80% to save 2 years of PMI payments ($2,400-$4,800).
How much equity do I need to remove PMI?
You need 20% equity (80% loan-to-value ratio) to request PMI removal. Example: $400,000 home with $320,000 loan = 80% LTV = eligible for PMI removal. You can calculate this by dividing your current loan balance by your home's original or current appraised value.
Can I remove PMI without refinancing?
YES! You can request PMI removal without refinancing once you reach 20% equity. Contact your lender, request removal in writing, and they may require a new appraisal ($400-600). This is much cheaper than refinancing ($3,000-6,000 in closing costs).
How long does it take to remove PMI?
The removal process takes 30-60 days: (1) Request removal from lender (Day 1), (2) Order appraisal if required (Day 7-14), (3) Lender reviews and approves (Day 21-45), (4) PMI removed from next payment (Day 30-60). Start the process 2 months before you hit 20% equity.
Does refinancing remove PMI?
YES, if you refinance with 20%+ equity, your new loan won't have PMI. However, refinancing costs $3,000-6,000 in closing costs. Only refinance to remove PMI if: (1) You can also lower your rate by 0.5%+, or (2) Your home value increased significantly and you now have 20%+ equity.
Can home appreciation help me remove PMI faster?
YES! If your home value increased, you may already have 20% equity even if you haven't paid down much principal. Get a new appraisal ($400-600) to prove increased value. If appraisal shows 20%+ equity, request PMI removal. This is especially effective in hot markets with rapid appreciation.
What if my lender refuses to remove PMI?
If you have 20%+ equity and good payment history, they legally must remove PMI (Homeowners Protection Act). If denied: (1) Request written explanation, (2) Get independent appraisal, (3) File complaint with CFPB, (4) Consider refinancing with new lender. Most denials are due to late payments or insufficient equity.
🚀 Ready to Remove PMI and Save $150/Month?
Check if you qualify for PMI removal through refinancing, reappraisal, or direct request. Start saving today.
Remove PMI Now →