PMI stands for Private Mortgage Insurance, and it is required on mortgages with a loan-to-value ratio greater than 80%. For example, if your home was worth $100k at the time of closing, and you owe more than $80k on the loan, you are required to have PMI.
I got my annual PMI disclosure tonight, and it says that if I’ve had my loan for at least two years, and have a good payment history for at least two years, I am eligible to cancel my PMI.
It’s not a lot, mind you. But I’d love to save the ~$70/mo it costs. That’s a fifth of vodka and a bag of CBD gummies, every month.
Also, if your home appreciates so that the equity is more than the 20% down payment on your loan would be, you might be able to stop paying it.
Some states the mortgage company has to give you your PMI payments back starting after the house was appraised at the higher value.
If you think your home has increased in value enough to lower the LTV to 80% you can typically ask them to do a “drive-by” valuation to confirm.