How to Get Rid of Private Mortgage Insurance

One of the things that many homeowners want to know is how to get rid of private mortgage insurance. If you bought a home without making a down payment of 20% or higher, or you refinanced your home with less than 20% equity, private mortgage insurance (PMI) was probably a requirement of owning your home.

There are several ways to eliminate paying Private Mortgage insurance.  The traditional of eliminating is:

When You Hit 78% Equity

If you get to 78% of your mortgage by making regular payments, then your lender is required to terminate the PMI without any request on your part. Of course, it is still a good idea to talk to your bank about the time that the termination should occur just to make sure everything is in order. You don’t want to pay any longer than you have to.                                                          

                                                             Or                                                                                    You Can Consider one of the Options Below in Eliminate your Private Mortgage        Insurance Early

Refinancing

You may have the possibility of refinancing your home if you think that your home has appreciated in value enough.

Appraisal

By getting a new appraisal, if your home has increased in value enough, you may be able to convince your lender to drop the PMI. 

Remodel

If you can remodel your home in such a way that it increases your home’s value enough, you may be able to hit the 80% mark and get rid of the PMI. 

Make bigger payments

Even a small increase in your monthly mortgage payment can have significant results on your bottom line. Over time you can chip away at what you owe just by paying $50 or $100 extra a month. The more you can throw at it, the faster you will get to the point of being able to get rid of the PMI. And you will have the added benefit of paying off your house faster.