What is PMI?   Lenders will require PMI insurance on a mortgage if the loan to propery value is greater than 80%. This is to protect them in case of a defualt on the mortgage. This can be an advantage to a homebuyer who does not have 20% to put down on a new property they wish to purchase. It allows them to put down a lower amount and pay PMI to protect the lender.   The disadvantage is you are making a monthly payment for PMI you will never see again.   With today’s market it is safe to say if you purchased a home in the year 2001 or earlier in the State of New Jersey you will have enough equity to exceed the 80% loan/property value. This makes it easy to remove the PMI insurance   To Remove PMI You can cancel Private Mortgage Insurance if you meet the following guidelines: Your loan balance has reached 80% of its original value. Your equity has increased by appreciation, which is highly probable in today’s market. As long as you have been timely with your payments and your loan value is less than 80% of your property value, PMI insurance can be removed.   How do I remove PMI? You need to call your institution and get your loan balance Ask your loan servicer for their PMI removal Policy, not the PMI insurance company. Estimate your property value to see if your loan value to property value is less than 80% If you meet the above requirements you will need to prove your property value with an appraisal from a licensed appraisal company. This could cost between $250.00 - $450.00 depending on the property and the appraisal report needed.