One of my favorite mortgage hacks doesn't involve refinancing, lowering your interest rate, or making extra payments.
It involves canceling a monthly mortgage expense you may not even realize you no longer have to make.
I'm talking about Private Mortgage Insurance (PMI).
If you purchased your home with less than 20% down and have a conforming conventional loan, you're likely paying Private Mortgage Insurance (PMI). PMI protects the lender if the loan goes into default—but you're the one paying the monthly premium. Most homeowners assume they'll keep paying PMI until it automatically falls off or they refinance their mortgage.
But here's the part almost no one tells you...
You don't always have to wait.
If your loan is a conventional mortgage and your home has gained enough equity—either from paying down your loan, your home's appreciation, or both—you may be eligible to request that your PMI be removed years before it would automatically fall off.
That's money that could stay in your pocket every single month.
Think about that for a second.
Many homeowners faithfully make their mortgage payment every month while continuing to pay PMI they may no longer need.
Not because they have to...
But because nobody ever told them to ask.
Every loan is different, and not every homeowner will qualify right away. But if you've owned your home for a few years—or your home's value has increased—a quick review could potentially save you hundreds of dollars each month and thousands over the life of your loan.
The good news? Requesting PMI removal is typically free, although some lenders may charge a small administrative fee or require you to pay for an appraisal if one is needed to verify your home's current value. That's a small price to pay if it means eliminating a monthly expense for years to come.
Whether you're a past client or we've never spoken before, I'm always happy to take a quick look at your situation, answer your questions, and let you know what your next steps should be. If you're eligible, I'll explain exactly what to ask your lender. If you're not quite there yet, I'll help you understand what milestone you're waiting for.
That conversation is always FREE.
Give me a call at 512.828.6420, email me at loans@teragilbert.com, or simply send me a message through the form next to this article. I’m happy to review your questions and point you in the right direction.
Sometimes there’s nothing to change.
Sometimes you find out you’re already eligible to stop paying for something you no longer need.
That’s my favorite kind of mortgage hack.
If you'd like to read the official guidelines, here are the homeowner resources I reference most often:
PMI cancellation requirements vary based on your loan type, payment history, investor guidelines, and your home's current equity. If you're unsure whether you qualify, whether you're a past client or we've never worked together before, I'm always happy to answer your questions, review your mortgage, and point you in the right direction. There's never a charge to call or email me for advice.
