News

Many homeowners don't realize they may be paying for Private Mortgage Insurance (PMI) long after it's necessary.

I recently had PMI removed from my mortgage, resulting in savings of more than $300 per month. That's money that can now go toward savings, investments, home improvements, or simply reducing monthly expenses.

If you've owned your home for a few years, it may be worth investigating whether you qualify for PMI removal.

What Is PMI?

PMI is typically required when a homebuyer puts down less than 20% when purchasing a home. It protects the lender, not the homeowner, and the monthly cost can range from tens to hundreds of dollars.

The good news is that PMI doesn't always have to remain on your loan for the life of the mortgage.

You May Qualify for PMI Removal If:

Your Home Has Increased in Value

Home values throughout the Tucker and Smoke Rise area have risen significantly over the past several years. If your home's market value has increased, you may now have more than 20% equity, even if you didn't start with it.

You've Been Paying Down Your Mortgage

Every mortgage payment reduces your loan balance. Over time, that equity builds up and could eventually reach the threshold required for PMI removal.

You've Made Significant Home Improvements

Major renovations such as kitchen remodels, bathroom upgrades, room additions, or finishing a basement can increase your home's value and help you reach the required equity position sooner.

It's Been Several Years Since You Purchased Your Home

Many homeowners simply never revisit their PMI status after closing. If you've owned your home for several years, it's worth checking whether you qualify.

How to Get Started

Contact your mortgage servicer and ask:

1. Whether your loan currently has PMI
2. What requirements must be met for removal
3. Whether a new appraisal is needed
4. What equity percentage is required

In many cases, the lender may require an appraisal to verify the current value of your home.

A Quick Phone Call Could Save You Thousands

For many families, removing PMI can mean annual savings of $1,000 to $4,000 or more. A single phone call to your mortgage company could reveal an opportunity to significantly reduce your monthly payment.

If you haven't reviewed your mortgage in a while, now may be a great time to see whether PMI removal is an option.

You might be surprised how much money you're leaving on the table every month.