Strategy focus

Remove mortgage insurance

If your home value has risen, you may no longer need to pay for PMI. Stop paying for coverage you have outgrown.

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Have you reached 20% equity?

Private mortgage insurance (PMI) is required when you put less than 20% down. It protects the lender, not you.

Many California homeowners have gained significant equity through appreciation over the last few years. If your loan-to-value (LTV) ratio is now 80% or lower based on current market value, you may be able to eliminate that fee entirely.

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Immediate savings

PMI typically costs 0.5% to 1% of the loan amount each year. On a $500,000 loan, removing it can save roughly $200–$400 per month — even without lowering your interest rate at all.

The savings math

Current situation

Loan balance:$480,000
Original value:$500,000
Current P&I:$3,200
PMI fee:$250
Total payment:$3,450

After refinance

New appraised value:$650,000
New LTV:73% (no PMI)
New P&I:$3,200
PMI fee:$0
Annual savings:$3,000

Example for illustrative purposes only. This scenario assumes a comparable interest rate; if current rates are higher than your existing rate, the PMI savings need to be weighed against the rate change.

Common questions

Do I need an appraisal?
To remove PMI by refinancing, the lender needs to verify current value — usually through a full appraisal, though some loans qualify for an appraisal waiver. We start with a free automated valuation so you know roughly where you stand before paying for anything.

Should I just “recast” instead?
Often, yes. If your existing rate is good, ask your current servicer to remove PMI based on a new valuation — it is far cheaper than a full refinance. We will tell you honestly when that is the better path, even though it means we do not write the loan.

What if rates are higher now?
Then refinancing purely to drop PMI may not pay off. The savings from removing PMI have to exceed the cost of the higher rate across the whole balance. We run that comparison first, and if the numbers do not work we will say so.

Let us beat your rate

No obligation analysis. No hidden junk fees. If we can’t beat your deal, at least you’ll know you have the best one.

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