PMI (Private Mortgage Insurance) is a monthly charge added to your mortgage payment
when you put less than 20% down at purchase. Your lender requires it as a safety net.
If you default, PMI pays out to them, not you.
PMI typically runs 0.5% to 1.5% of your loan balance per year. That’s
$100 to $500 a month on most Wasatch Front mortgages, money leaving your
account every single month for a policy you will never benefit from.
It made sense the day you closed. It may not make sense anymore.
What does PMI cost?
$291/mo
$350k loan · 1.0% PMI rate
$3,500 / year
$283/mo
$400k loan · 0.85% PMI rate
$3,400 / year
$375/mo
$450k loan · 1.0% PMI rate
$4,500 / year
Over five years at $300/month: $18,000 in
premiums paid for a policy that covered your lender’s risk, not yours.
On the Wasatch Front, where home values have risen significantly since 2020,
millions of dollars in PMI payments are now unnecessary. The equity is there,
but the cancellation request hasn’t been filed.
How do you remove PMI?
Under the federal Homeowners Protection Act, your lender is required to respond to
a written PMI cancellation request within 30 days. You qualify to request cancellation
once your equity reaches 20% of your home’s current value.
If your home has appreciated since you bought, and most Wasatch Front homes have,
your equity may already be there, even if your original amortization schedule
hasn’t reached that point yet.
The question isn’t whether you’ll qualify someday.
It’s whether you already qualify today.
Most Utah homeowners who bought before 2023 qualify based on appreciation alone.
PMI is a monthly charge added to your mortgage when you put less than 20% down at purchase. It protects your lender if you default, not you. Typical cost: 0.5% to 1.5% of your loan balance per year, or $100 to $500/month on most Utah mortgages.
How much does PMI cost per month?
On a $350,000 loan at 1% PMI, you’re paying $291/month, or $3,500/year. On a $400,000 loan at 0.85%, that’s $283/month. Your exact rate depends on your credit score, loan size, and lender. Check your mortgage statement for the line item labeled “MI” or “PMI.”
How do I get rid of PMI?
Submit a written PMI cancellation request to your lender once your equity reaches 20% of your home’s current value. Under the Homeowners Protection Act, your lender must respond within 30 days. If your home has appreciated, you may qualify even if your original payment schedule hasn’t reached that point yet.
Can I remove PMI if my home has appreciated?
Yes. This is the appreciation path. If your home’s current value means your loan balance is now 80% or less of that value, you can request cancellation under the Homeowners Protection Act regardless of how long you’ve been paying. Most Wasatch Front homeowners who bought before 2023 already qualify based on appreciation alone.
Do I need an appraisal to remove PMI?
It depends on your lender. Some require a full appraisal ($300 to $650); others accept a broker price opinion (BPO) or an internal valuation. Before spending anything, use EquityUp’s free LTV audit to confirm your equity position using public Utah county assessor data. Our $250 Strategy Session includes appraisal prep guidance if your lender requires a formal valuation.
