How Do I Get Rid of PMI
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. Build 20% Equity in Your Home
The key to canceling PMI is hitting that magic number: 20% equity. That means your remaining loan balance is 80% or less of your home’s current value.
There are two main ways to build equity:
- Regular monthly payments (which chip away at your principal)
- Making extra payments (even one extra payment a year can help!)
You can also gain equity faster if home values in your area go up—which leads to the next step.
2. Request Cancellation—Don’t Wait for It to Happen Automatically
Once you reach 20% equity, contact your lender and formally request PMI cancellation. You may need:
A new home appraisal to confirm the current value Proof of a solid payment history A written request to remove PMISome lenders won’t cancel it automatically until you reach 22% equity, so being proactive could save you hundreds—or thousands—sooner.
3. Consider Refinancing to Speed Things Up
If your home’s value has significantly increased, refinancing into a new mortgage can help:
- Lock in a lower interest rate (if market conditions allow)
- Recalculate your equity based on your home’s new value
- Remove PMI if your new loan-to-value (LTV) is under 80%
Refinancing also gives you a chance to restructure your loan with better terms—and potentially save big over time.
Ready to Drop That Extra Monthly Payment? Let’s Make It Happen
Download our free “Smart Equity Playbook” — includes tips to track equity, pay off faster, and cancel PMI
Chat live now to ask about your current equity or appraisal options
Schedule a call with a Stairway Mortgage advisor to explore refinancing or request PMI removal
At Stairway Mortgage, we help you build wealth step by step—
and that includes knowing when to stop paying for what you no longer need.
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