If you’re a homeowner, you might be paying mortgage insurance — and if you are, you’re probably wondering how to stop. Getting rid of mortgage insurance can save you hundreds of dollars a month, and the good news is, you’ve got options.

What Is Mortgage Insurance, and Why Do You Have It?

Mortgage insurance is an extra cost tacked onto your monthly mortgage payment, and while it protects the lender, not you, it’s often required if your down payment was less than 20% when you bought your home. Essentially, it’s a safety net for the lender in case you stop making payments. For you, though, it’s just an added expense — and one you’ll want to eliminate as soon as possible.

There are two main types:

• Private Mortgage Insurance (PMI): For conventional loans

• Mortgage Insurance Premium (MIP): For FHA loans

Both add to your monthly mortgage payment — and no one loves paying extra, right? So here’s how to ditch it.

How to Get Rid of PMI (Private Mortgage Insurance)

If you have a conventional loan, you’re dealing with PMI. Here’s how to make it go away:

1. Reach 20% Equity Once you’ve paid down your mortgage balance to 80% of your home’s original purchase price, you can request PMI removal. You’ll usually need to send a written request to your lender.

2. Automatic PMI Cancellation Lenders are legally required to automatically remove PMI when your loan balance hits 78% of the original home value — no request needed.

3. Show Increased Home Value Has your home’s value gone up? If you’ve hit 20% equity based on current market value, you can pay for a new appraisal and ask your lender to remove PMI based on the new numbers.

4. Refinance Your Loan If interest rates have dropped or your home has appreciated, refinancing could kill two birds with one stone: lower your rate and eliminate PMI by hitting that 20% equity mark.

How to Get Rid of MIP (Mortgage Insurance Premium)

If you have an FHA loan, you’re likely paying MIP — and it works a little differently.

1. Wait It Out If you put 10% or more down, your MIP will automatically drop off after 11 years.

2. Refinance to a Conventional Loan Once you have 20% equity, refinancing into a conventional loan can eliminate MIP altogether. Plus, you might score a better interest rate in the process.

Is It Time to Ditch Mortgage Insurance?

If you think you’re ready to drop mortgage insurance, your next step is to contact your lender. Ask them what their requirements are for PMI or MIP removal — and if you’re considering refinancing, talk to a trusted mortgage advisor to see if it makes sense.

Dropping mortgage insurance can be a game-changer for your monthly budget. Why keep paying for something you don’t need when you could be saving instead?

I recently went through this process on one of my own properties, so if you’re thinking about getting rid of mortgage insurance and want some guidance, reach out to me! I’d be happy to help you figure out your best options.

Got questions about homeownership, real estate, or building wealth through property? Let’s connect!