How do I get rid of PMI?

How do I get rid of PMI? If you have mortgage insurance or private mortgage insurance you will need to keep it for at least two years. If you pay down your mortgage to 80% of the original purchase price and you are past the two year mark, the lender has to take it off. I would call your bank and ask them for what their policy is for for getting rid of the mortgage insurance. The other option is to have your home at a 78% LTV. This means that the mortgage is 78% of the value. Well why wouldn't I do it at 80%? If you didn't put a lot of money down on the property and the value went way up in a two year period, you would not have to personally pay it down to the 80% level. The real estate market can help you get to a level that a bank will let you get rid of the pmi. You can either pay it down to 80% or let market appreciation get you to 78%. Either way this will help you get rid of the pmi. Getting rid of that extra payment each month will be very nice.

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