There are a few ways to get rid of PMI, or private mortgage insurance.
Wait for it to automatically cancel. PMI will automatically cancel once your loan balance reaches 78% of the original value of your home. This is called the 78% Loan-to-Value (LTV) threshold. For example, if you bought a home for $200,000 and made a 10% down payment, your loan balance would be $180,000. Once your loan balance reaches $132,000, PMI will automatically cancel.
Request cancellation when your LTV reaches 80%. You can also request cancellation of PMI when your loan balance reaches 80% of the original value of your home. This is called the 80% LTV threshold. To do this, you'll need to contact your lender and provide proof of your home's current value.
Get a new home appraisal. If your home's value has increased since you bought it, you may be able to get a new home appraisal and cancel PMI even if your loan balance is still above 80% LTV.
Refinance your mortgage. If you refinance your mortgage into a new loan with a lower LTV, you may be able to cancel PMI. However, you'll need to make sure that the closing costs of refinancing don't outweigh the savings from eliminating PMI.
Here are some additional things to keep in mind when trying to get rid of PMI:
You'll need to be current on your mortgage payments and have a good credit history.
Some lenders may require you to have a certain amount of equity in your home before they'll cancel PMI.
You may need to pay a one-time fee to cancel PMI.
It's important to talk to your lender to find out what the specific requirements are for canceling PMI in your case.
