Private Mortgage Insurance (PMI) is charged if you put less than 20% down. Once you reach 20% equity, you can request removal. Eliminating PMI saves $100–$300/month which can be redirected to principal.
Anyone currently paying PMI who is approaching 20% equity in their home.
Find your current loan balance and the original home purchase price.
When your balance drops to 80% of the original value, contact your lender to formally request PMI removal.
By law (Homeowners Protection Act), lenders must cancel PMI automatically at 78% of original value.
Once removed, redirect those savings directly to extra principal payments.