If you are a homeowner with a mortgage that carries Private Mortgage Insurance (PMI), you can get it removed once your home has appreciated enough that your loan balance is below 80% LTV. Fortunately, the process of getting PMI removed is not complicated and can save you a significant amount of money over the life of your loan.

The first step to getting PMI removed is to contact your loan servicing company (the one you are making payments to). Let them know that you believe your home's value has increased enough that your loan balance is below 80% LTV. Your loan servicer should be able to provide you with the specific steps you need to take to get PMI removed, as well as any documentation or forms you need to submit.

One of the most important pieces of documentation you will need is an appraisal that confirms your home's current value. Your lender may have specific requirements for the appraisal, such as requiring that it be performed by a licensed appraiser, or that it be completed within a certain timeframe. Once you have the appraisal in hand, you can submit it to your lender along with any other required documentation. Often your bank will take care of this for you.

In addition to submitting an appraisal, you may also need to pay certain fees to get PMI removed. For example, your lender may require that you pay a processing fee or an early termination fee. Be sure to read the terms of your mortgage agreement carefully to understand what fees you may be required to pay.

It's important to note that not all lenders will remove PMI automatically once your loan balance drops below 80% LTV. Some lenders may require that you specifically request PMI removal, while others may require that you wait until a certain period of time has passed before PMI can be removed.

If you are a homeowner with a mortgage that carries PMI, it's important to understand your options for getting it removed once your loan balance drops below 80% LTV. Contact your lender directly to understand their specific requirements for PMI removal, and be prepared to pay for an appraisal or a broker's opinion of value (cheaper) to prove your home's current value. While there may be some fees associated with PMI removal, the potential cost savings over the life of your loan make it well worth the effort.