You don’t need to wait for your mortgage servicer to contact you about removing PMI. Refinancing your existing mortgage now could provide the following benefits:
- Removal of PMI
- Lower mortgage interest rate
- Reduced monthly mortgage payments
Can I refinance now to remove PMI?
If you have 20 percent equity in your home, refinancing your current home loan may allow you to eliminate the expense of PMI. If you have an FHA loan, another benefit of refinancing may be a lower interest rate and better terms.Apply Now
How can I determine my home equity?
First, divide the current balance of your loan by the value of your home to get your loan-to-value (LTV) ratio. Then, subtract this percentage from 100 percent to get your current home equity amount.
For example: Your loan amount is $320,000 and your home is valued at $400,000. Therefore, your LTV is 80 percent and your equity is 20 percent.