Say Goodbye to PMI: How to Remove Private Mortgage Insurance in Minnesota

Mitchell Krueger
7 minutes ago
3 min read

If you bought a home in Minnesota with a conventional loan and a down payment of less than 20%, there’s a good chance you're paying Private Mortgage Insurance (PMI). While PMI helps lenders reduce risk, it’s an extra monthly cost for you, and one you might not need anymore. Let’s walk through when and how you can remove PMI and start saving every month.

What Is PMI?

PMI is insurance that protects your lender if you stop making payments on your loan. It doesn’t protect you, and it typically adds $100–$300 per month to your mortgage payment. The good news? Once you’ve built enough equity in your home, you may be able to remove it.

When Can You Remove PMI?

There are two main ways PMI can go away:

1. Automatic Cancellation

With a conventional loan, your lender will cancel PMI automatically once your loan balance reaches 78% of the original home value (based on the purchase price or original appraisal), as long as you’ve been making payments on time. Other loan types, such as FHA loans, have different rules.

2. You Can Request Removal at 80% LTV

Even better, you don’t have to wait! You can request that PMI be removed once your loan balance is at 80% of your home’s value. This might happen because:

You’ve paid down your loan faster than scheduled
Your home has gone up in value
You’ve made home improvements

PMI Removal Rules in Minnesota

Minnesota follows federal PMI laws but also adds a few state-specific guidelines.

To remove PMI in Minnesota, you generally must:

Have at least 20% equity in your home
Be current on your payments
Have had the loan for at least 2 years
Live in the home (it must be your primary residence)
Call your mortgage company and submit a written request

In most cases, your lender will require a new appraisal or broker's price opinion to confirm your home’s current value, and you’ll typically pay for it.

How to Request PMI Removal

Here’s what to do if you believe you qualify:

Check Your Loan Balance
- Look at your latest mortgage statement or log in online.
Estimate Your Home’s Value
- Use recent home sales in your area or get a CMA (comparative market analysis) from a local real estate agent.
Do the Math
- If your loan balance is less than 80% of your current home value, you’re likely eligible.
Write to Your Lender
- Send a written request asking for PMI removal.
Wait for Their Response
- Your lender will respond within 30 days, either canceling PMI or explaining why not.

Tips to Get There Faster

Make extra principal payments when possible.
Track your home value with market trends or a yearly valuation.
- Subscribe to our Monthly Neighborhood Updates Newsletter to stay informed on home sales, price trends, and real estate activity in your area.
Stay on top of payments as late payments can delay PMI cancellation.

PMI can add thousands of dollars over the life of your loan, but you don’t have to pay it forever. If you think you’ve reached the 20% equity mark, take action! A quick review of your loan and home value might be all it takes to start saving.

Curious About Your Home’s Value?

Feel free to use our automated market analysis tool to get a quick estimate of your home’s worth. This model doesn’t factor in any upgrades, renovations, or unique features your home may have.

For a more accurate and personalized Comparative Market Analysis (CMA), contact us below. We’d be happy to help!