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How Do You Request the Removal of PMI from Mortgage?

How Do I Request the Removal of PMI from My Mortgage?

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

To request the removal of private mortgage insurance (PMI) from your mortgage FREEandCLEAR recommends that you send a registered, return receipt letter to your lender. Your letter should include information that supports your request such as property values and comparable sales in your neighborhood in addition to your outstanding loan and estimated loan-to-value (LTV) ratio (the ratio of your outstanding loan balance to the current value of your home). After you receive confirmation that the lender has received your letter follow-up by calling the lender and initiating the process. Lenders will delay removing PMI as long as possible so you need to be assertive

The lender will order an appraisal report to determine the current value of your property. The borrower is required to pay for the appraisal report which typically costs $400 - $750 depending on the estimated property value

If the appraised property value supports an LTV ratio less than the required threshold of 75% or 80% (an LTV of 75% or less is tyically required if you are less than five years into a mortgage and an LTV of 80% or less is required if you are more than five years into a mortgage), the PMI will be removed from your monthly mortgage payment. If the appraised property value falls below your expectations and the LTV ratio is greater than than the maximum threshold you can request a second appraisal but you are required to pay another appraisal fee

Before you request to have PMI removed, FREEandCLEAR recommends that you visit websites such as Zillow and Realtor.com to determine the estimated value of your property. Although you cannot only rely on the estimates provided by these sites they provide a general approximation of your property's value

Please note that PMI can only be removed in cases where the borrower pays for the PMI separate from their mortgage payment.  PMI cannot be removed from mortgages with lender paid PMI where the borrower pays a higher interest rate instead of paying PMI separately

Eliminating PMI requires extra time and effort but can save you a significant amount of money over the course of your mortgage

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About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

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