Can I Cancel PMI If My Home Value Increases? How to Get Rid of It

When you bought a house with less than a 20% down payment, your mortgage lender tacked on the extra cost of private mortgage insurance (PMI) as a standard precaution. But now that you’re confident that your house is worth more today than when you purchased it, it makes you wonder: “Can I cancel PMI if my home value increases? When does PMI go away?” Whether your mortgage qualifies for PMI removal will depend on factors like the amount you still owe on the loan and your payment history. Can You Cancel PMI? Check Your Home Value Enter a few details about your property and we’ll provide you with a home value estimate in less than two minutes. This won’t replace an appraisal, but it can help you run some preliminary math on your approximate loan-to-value (LTV) ratio. With home prices trending upward and supply staying low, many homeowners are sitting on far more equity than they had just a few years ago. It’s always a good idea to check if you qualify for PMI cancellation as you build your home equity. A higher equity stake in your home can lower the perceived risk of your mortgage and, in some cases, speed up the path to PMI removal. And because PMI can add tens of thousands of dollar...