Private mortgage insurance (PMI) costs $100-$300/month on a typical loan but can be removed once you reach 20% equity. Here is how to eliminate PMI as fast as possible.
PMI Removal Options
- Automatic removal: at 22% equity based on original value
- Request removal: at 20% equity with written request
- Reappraisal: if home value has increased to push you past 20%
- Refinance: into a new loan without PMI
Rising home values mean many homeowners hit 20% equity faster than expected. A $1,000 reappraisal could prove you have enough equity to remove $200/month in PMI — paying for itself in 5 months.
