Still Paying PMI? You Might Not Need To Anymore

If you bought a home before 2020 with a conventional loan, there’s a real chance you’re paying extra every month that you don’t have to.

We’re talking about PMI (Private Mortgage Insurance) — a cost many homeowners forget to revisit after closing.

What Is PMI (and Why You’re Paying It)

PMI is a monthly fee added to your mortgage when you put less than 20% down. It protects the lender—not you—in case of default.

It became more common after the 2008 financial crisis, making it easier for buyers to get into homes with smaller down payments. But that convenience comes with a cost.

👉 Most homeowners simply wait for PMI to fall off automatically… but that’s not always the smartest move.

Why This Matters Right Now

Recently, while helping homeowners with property tax protests, we’ve been reviewing home values more closely.

And here’s what we’re finding:

Many homeowners may have already gained enough equity to remove PMI—but are still paying it anyway.

With home values rising over the past few years, you might have crossed the threshold without realizing it.

The Common Scenario

If you bought between 2018 and 2020 and put around 5% down, your lender likely set PMI to automatically drop off years down the line.

In most cases:

• You’re still 3 to 7 years away from automatic removal

• That timeline is based on your original purchase price and payment schedule

But here’s the catch…

👉 Your home’s value may have increased enough to qualify you right now.

How to Remove PMI Early

There are two main ways to get rid of PMI sooner:

1. Request Removal at 80% Loan-to-Value (LTV)

If your loan balance is now 80% or less of your original purchase price, you can request PMI removal from your lender.

2. Use Your Home’s Current Value

If your home has gone up in value, you can:

• Get a professional appraisal

• Show that your loan is now 80% or less of today’s value

If approved, you can remove PMI early—even if your original schedule says otherwise.

What Most Homeowners Don’t Know

PMI is required to automatically fall off at 78% of the original value.

But:

• That’s based on your original purchase price

• And your payment schedule—not market appreciation

So even if your home value has jumped significantly, PMI won’t automatically adjust unless you take action.

What This Means for You

Removing PMI could put back roughly:

💰 $150–$250 per month
💰 $1,800–$3,000 per year

That’s money that could go toward savings, investing, or simply lowering your monthly expenses.

Should You Check?

If you’ve owned your home for a few years and haven’t looked into your PMI recently, it’s worth a quick review.

You might already qualify—and not even know it.

Need Help Figuring It Out?

If you’re unsure where you stand, we can help you:

• Review your current loan position

• Estimate your home’s value

• Determine if removing PMI makes sense

📩 Reach out anytime—we’re happy to take a look with you.

Don’t wait years to save money you could keep starting now.