PMI Removal Calculator
How the PMI Removal Calculator Works
This calculator will check if you can payoff your Private Mortgage Insurance (PMI). This is based on your current mortgage value & your house value. If you Loan to Value (LTV) ratio is lower than 0.78, bank will remove the PMI!
When does PMI go away?
Your PMI Insurance will automatically go away when your mortgage Loan-to-Value ratio has dropped below 78%. However, you can also have it removed if it has dropped below 80% by sending your bank a letter.
How to get rid of PMI: 3 Methods
1). Banks will automatically remove Private Mortgage Insurance when your loan balance has dropped below 78%.
2). When your loan balance is between 78% - 80% you can send your bank a letter to get it removed
3). You can refinance your mortgage to make sure this time your loan to value ratio will be below 80%
My PMI Story
Just like my other people out there I bought a beautiful home without knowing about PMI. I borrowed more than 80% of the value of the home and ended up paying $500 Private Mortgage Insurance per year! After paying the PMI the first year I did some research and found out I could get rid of PMI insurance by adding extra payments to my mortgage. After my second year of paying PMI, I contacted an appraiser who valued my home that time. The new value of the home in combination of the extra payments resulted in a Loan-to-Value ratio below 80% With a quick letter to the bank I was able to remove the PMI! Saving me $500 per year in PMI payments! If you are just like me and have never heard of PMI, then all of this can be quite overwhelming. That is why I created this calculator!