3 Ways to Eliminate PMI and Lower Your Monthly Payment

Private Mortgage Insurance (PMI) helps buyers purchase a home with a smaller down payment, but most homeowners look forward to the day they can remove it and reduce their monthly housing costs. Here are three common ways to eliminate PMI:

1. Build 20% Equity in Your Home
Once you have at least 20% equity in your home, you can typically request that your lender remove PMI. Equity grows as you pay down your mortgage balance and as your home's value increases.

2. Take Advantage of Rising Home Values
If home prices in your area have increased since you purchased your property, you may reach 20% equity sooner than expected. Your lender may require a professional appraisal to verify the current value before removing PMI.

3. Refinance Your Mortgage
Refinancing can be a great option if your home has gained value and you now have at least 20% equity. A new loan may allow you to eliminate PMI and potentially secure a better interest rate, depending on market conditions.

Removing PMI can save homeowners hundreds of dollars each month and thousands over the life of a loan. If you're unsure whether you qualify, it's worth contacting your lender or speaking with a real estate professional to review your options.

John Davis, Realtor®
D and M Homes
"We Open Doors to New Beginnings"
www.DandMHomes.com