7. Get the Lender to Eliminate Private Mortgage Insurance
Getting rid of the private mortgage insurance (PMI) can actually lower your mortgage payments. However, this depends on how much equity is in your home.“If you have at least 20% equity in the property, I recommend contacting the lender about dropping the mortgage insurance,” says Pierce.
She explains that borrowers who usually don’t pay 20 percent down are required to have PMI for at least 2 years, but says there may be some exceptions to the two-year rule. For instance, if the homeowner made certain improvements to the house that substantially increased the value, the requirement may be ignored.
