If you bought your home in Rochester, NY with less than 20 percent down, there's a good chance you're still paying Private Mortgage Insurance (PMI) every month. The thing is... you might not have to anymore.
At The Anthony Butera Team, we’re focused on helping homeowners not only buy and sell real estate, but also make the most of their investment after closing. Eliminating PMI is one of the most overlooked ways to reduce monthly expenses and we are here to help you with the process!
What Is PMI and Why Are You Paying It?
PMI is typically required on conventional loans when your down payment is less than 20 percent. It's meant to protect the lender in case of default, but it does nothing for you as the homeowner.
Many people keep paying PMI simply because they don't realize they can remove it. If that’s you, it's time to take a closer look.
How to Cancel PMI and Keep More of Your Money
Check Your Equity
Once your loan balance drops to 80% of your home's original value, you're allowed to request PMI removal. Every lender has their own process, so you’ll need to reach out to them directly.
If you have an FHA loan, different rules apply. The steps below are mostly for conventional loans.
Has Your Home Value Increased?
With rising home values in Monroe County (and any upgrades you’ve made like a finished basement or renovated kitchen) you may already have 20 percent equity, even if your loan balance hasn’t changed much.
What Does the Process (In Most Cases) Look Like?
- Be current on your mortgage payments
- Order an appraisal to confirm your home’s current market value
- Contact your loan servicer to start the PMI cancellation request
We can help estimate your home’s value upfront, so you know if it’s worth pursuing before paying for an appraisal.
Is Refinancing an Option?
While interest rates are higher than a few years ago, refinancing might still be a good choice if you have a lot of equity and want to access cash for other projects or consolidate debt. We recommend reviewing this option carefully to see if it makes financial sense long term.
Don’t Wait for Automatic Removal
By law, PMI must be automatically removed when your loan hits 78% of the original home value. But that could be months or years away. If you're eligible now, why keep paying more than you have to?
Let’s Talk About Your Options
We can give you a quick estimate of your home's current market value, help you understand your equity position, and guide you through the next steps.
Start with a quick conversation. Reach out to The Anthony Butera Team today and see how much you could save. Call us at 585-222-SOLD or CLICK HERE for a FREE Home Valuation.
