For many homeowners, Private Mortgage Insurance (PMI) is one of those pesky expenses that feels unavoidable—until it’s not. If you’ve owned your home for a few years, made consistent payments, or your neighborhood has seen rising property values, you may have built more equity than you realize. And that means one thing: you may be eligible to remove PMI.

At The Welter Group, we love helping homeowners save money and better understand their options. So let’s break down how to ask your lender for a new appraisal and what to expect throughout the process.

What Is PMI and Why Does It Matter?

PMI is an insurance policy that protects your lender if you put down less than 20% when you bought your home. It’s added to your monthly mortgage payment and doesn’t benefit you directly—so once you have enough equity, there’s no reason to keep paying it.

Removing PMI can save homeowners hundreds of dollars per month, making it one of the easiest financial wins in real estate.

Step 1: Check Your Current Equity

Before contacting your lender, get a sense of where you stand.

You can estimate your home’s value by:

• Looking at recent comparable sales in your neighborhood
• Reviewing your online mortgage portal or statement to check the current loan balance
• Speaking with a local real estate agent (hi—that’s us!) for a more accurate valuation

Generally, you’ll need 20% equity to remove PMI, though some lenders may have slight variations.

Step 2: Contact Your Lender and Request PMI Removal

Once you believe you’ve hit that equity milestone, reach out to your lender or mortgage servicer. A simple phone call or online request is usually all it takes.

Tell them:

• You’d like to be evaluated for PMI removal
• You believe your home has appreciated or your loan balance has improved enough to qualify
• You’re requesting a new appraisal to confirm the home’s current value

Step 3: Understand the Cost (and Why It’s Worth It)

Most lenders will require a new appraisal, which typically costs $400–$700 depending on the property type and area.

Yes, it’s an upfront expense—but if removing PMI saves you $150–$300+ each month, the math works in your favor quickly.

Step 4: Prepare for the Appraisal

Treat this like a mini home showing:

• Tidy up inside and out
• Make sure all rooms are accessible
• Highlight any updates or improvements you’ve made
• Have a list of upgrades ready (new roof, finished basement, updated kitchen, etc.)

These details can help maximize your valuation and get you over the equity threshold.

Step 5: Celebrate—and Confirm PMI Removal in Writing

If your appraisal comes back at or above the needed value, your lender will officially remove PMI from your monthly payment. Make sure you receive documentation confirming the change and verify your next statement reflects it.

When in Doubt, Ask an Expert

If you’re unsure whether your home qualifies—or want help determining if an appraisal is worth the cost—The Welter Group is always here to help. We can run a local market analysis, review comparable sales, and give you a realistic picture of your current home value.

Saving money and building wealth through real estate isn’t just possible—it’s what we help homeowners do every day.

Thinking about removing PMI or need a quick home value check?

Let’s connect.

The Welter Group
📞 773-218-2535
📧 stephaniewelter@kw.com
🌐 weltergroupre.com