Texas Lone Star Lending Video
Mortgage Tune-Up: Could PMI Be Removed?
Mortgage insurance is easy to forget once your payment feels routine, but it may be worth reviewing. In this Plus-5 video, we explain when PMI may be removable, why FHA mortgage insurance works differently, and why a mortgage tune-up can help you see whether your loan still fits your situation.
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Read the transcript
Once your mortgage payment starts to feel normal, it’s easy to fall into a “set it and forget it” mindset.
But one thing worth checking from time to time is mortgage insurance.
On a conventional loan, private mortgage insurance usually cancels automatically once your loan balance is reaches 78% of the original home value used for the loan. But you may not have to wait that long.
If you’ve paid the balance down, or if your home value has increased, you may be able to request PMI cancellation sooner. That usually means contacting your loan servicer, having a good payment history, and being willing to pay for an appraisal ordered through the servicer. That appraisal is what determines whether you really have enough equity.
This can also be a good time to look at whether a refinance makes sense. Even a small rate improvement may matter if it also helps remove monthly mortgage insurance.
And if you have an FHA loan, it’s especially important to stay aware. For most FHA loans from the last several years, the monthly mortgage insurance doesn't simply fall off when you reach 20% equity. In many cases, removing it means refinancing into a new loan.
The takeaway is simple: don’t assume your mortgage is still the best fit just because the payment feels familiar.
And remember — it’s always okay to ask. We’re here to help you get home.