If you purchased your home with less than a 20% down payment, you likely have Private Mortgage Insurance (PMI). Now might be the time to consider petitioning your lender to stop this payment requirement.

Here’s a brief overview of what you need to know:

1. Do You Have Enough Equity? Your lender typically requires around 20-25% equity to end PMI payments. You can achieve this by making regular mortgage payments to increase your equity or if your home’s value has significantly increased.

2. Understand the Process: Each lender has specific requirements for canceling PMI. Review your loan documents and inquire about cancellation procedures. You’ll likely need a current appraisal of your home’s value and to calculate your loan-to-value ratio.

3. Don’t Give Up: While lenders may be slow to review PMI cancellation requests, persistence pays off. Make written requests and keep copies for your records. If needed, consider legal action as a last resort.

4. Help Your Case: Boost your chances of PMI cancellation by making extra principal payments, maintaining timely mortgage payments, and preserving your home’s value through regular upkeep. Avoid taking out additional loans against your home’s equity.

If you have any questions or need assistance navigating the PMI cancellation process, feel free to reach out to me. I’m here to help!