Still Paying PMI? Here’s How to Get Rid of It Sooner
Private Mortgage Insurance (PMI) is an extra cost that homeowners want to eliminate as quickly as possible. If you’re currently paying PMI, you don’t have to wait years to reach 20% equity—you have options to remove PMI faster and save money.
In this guide, we’ll break down:
- The fastest ways to remove PMI
- Steps to request PMI cancellation
- Refinancing strategies for PMI removal
For a full explanation of what PMI is and why lenders require it, check out our Private Mortgage Insurance Guide.
How to Remove PMI Faster
Make Extra Principal Payments
One of the simplest ways to remove PMI early is to pay down your loan faster. Even small additional payments toward your principal can help you reach 20% home equity sooner.
- Apply tax refunds, bonuses, or extra income toward your mortgage.
- Round up your mortgage payment each month to pay a little extra.
- Make biweekly mortgage payments instead of monthly to accelerate payoff.
Request PMI Cancellation at 80% LTV
Once your loan-to-value ratio (LTV) reaches 80%, you can officially request PMI removal from your lender. You’ll need:
- A good payment history with no late payments
- A formal request to your mortgage servicer
- A home appraisal (if required by your lender)
Pro Tip: Lenders are required to automatically remove PMI when your LTV hits 78%, but you can request it sooner at 80%.
Refinance to a PMI-Free Loan
If mortgage rates are lower than when you bought your home, refinancing can be a smart way to eliminate PMI and lower your monthly payments.
Best Refinancing Scenarios for PMI Removal:
- Your home’s value has increased, pushing your equity above 20%.
- You’ve improved your credit score, qualifying for better loan terms.
- Current mortgage rates are lower than your original loan rate.
Federal Hill Mortgage offers fast closing times, so you can refinance and remove PMI as quickly as possible. Check your refinance options here.
Get a New Home Appraisal
If your home has appreciated in value, you may have more equity than you think. A fresh appraisal can prove your LTV is at 80% or lower, helping you remove PMI early.
When to Consider a New Appraisal:
- You’ve made home improvements that increased your home’s value.
- Your local real estate market has surged in value.
- You bought a home below market value, and it’s now worth more.
Ask your lender if an appraisal is required to remove PMI—and if so, whether it’s worth the cost based on your estimated home value.
Is Refinancing or Paying Down PMI the Better Option?
strategy | best for | considerations |
|---|---|---|
Refinancing | Homeowners with lower interest rate opportunities | Closing costs apply, but can lower overall payments |
Paying Down Extra | Borrowers with extra cash who want PMI gone | Requires lump-sum payments but avoids refinance costs |
New Appraisal | Homes that have significantly increased in value | Appraisal fees apply, but PMI removal can save thousands |
Still unsure which option works best for you? Contact Federal Hill Mortgage for a free mortgage consultation.
Take Action: Remove Your PMI & Save Money Today
PMI doesn’t have to be a long-term cost. Whether through extra payments, refinancing, or an appraisal, you can remove PMI sooner than you think.
Get expert guidance from Maryland’s #1 mortgage lender!
- Free mortgage consultation – We’ll review your best options for PMI removal.
- Fast closing times – Refinance quickly and start saving sooner.
- No hard credit check preapproval – See your loan options risk-free.
Stop Overpaying on Your Mortgage
Remove PMI & Lower Your Monthly Payments
Private Mortgage Insurance (PMI) adds unnecessary costs—but you don’t have to pay it forever! Whether through refinancing, extra payments, or a new appraisal, we’ll help you find the best strategy to remove PMI faster and save money on your mortgage.
Get a Free PMI Removal Consultation
