Stop paying PMI

With current laws, both consumers and lenders share responsibility to how long PMI coverage is required. If you have private mortgage insurance on your existing mortgage and you now have 20% equity (the difference between the loan amount and the market value of your home), you can get rid of PMI in two different ways:

• Contact the PMI department at the toll free number shown on your mortgage statement. Tell them you have 20% equity and want to drop the PMI. They will explain the requirements of doing so, including instructions on how to secure an updated appraisal.
• Refinance to a new mortgage program that won’t require PMI.
  

Tomorrow, I'll let you know how you can avoid PMI on a new mortgage.