If your mortgage statement lists a line item called "PMI," you're likely paying somewhere between 0.3% and 1.5% of your loan amount every year for private mortgage insurance.
On a $350,000 home, that's anywhere from roughly $88 to $437 a month, and most of it does nothing for you.
It protects the lender if you default — not your wallet.
The good news is that this cost usually isn't permanent.
Under federal rules, PMI generally has to come off automatically once you reach 22% equity in your home based on the original purchase price and amortization schedule, as long as your payments are current.
The better news is that you don't have to wait that long.
You can typically request cancellation once you hit 20% equity, and in some cases you can get there faster than your amortization math suggests.
Here's the part that trips people up: lenders are not required to call you up and remind you that you've crossed the 20% mark.
The automatic removal at 22% is required, but the request-at-20% option is something you have to initiate.
Plenty of homeowners keep paying PMI for years past the point where they could have cancelled it simply because nobody told them.
When you're ready to ask, come with documentation.
Most servicers want proof the home's value hasn't dropped — a recent appraisal, a broker price opinion, or in some cases a automated valuation model.
You'll usually need a written request, current payment history, and verification that the property is your primary residence or a qualifying second home.
There are also situations where cancellation isn't allowed regardless of equity.
If you've been more than 30 days late on payments in the last 12 months, or 60 days late in the last 24 months, servicers can turn you down.
Investment properties and some second homes fall under different rules that often don't allow borrower-requested cancellation at all.
One underrated angle: rising home values in your area may have already pushed your loan-to-value ratio below 80%.
If comparable sales near you have jumped since you bought, an appraisal could get you out of PMI surprisingly fast — sometimes for a few hundred dollars upfront that pays for itself in two or three monthly savings.
It's worth a phone call and a quick document review.
Worst case, you learn you need to wait a few more months.
Best case, you free up a couple hundred dollars a month with one request.
That's money that could go toward a high-yield savings account, a car payment, or just a grocery bill that keeps climbing. **Our take:** This is one of the easiest, most overlooked wins in household budgeting.
Lenders have no incentive to volunteer the information, so the responsibility sits with you.
Final Thoughts
Put "check PMI status" on your calendar once a year and treat any savings you find like found money.