If you purchased a home in the Chicago area with less than 20% down, you’re likely paying Private Mortgage Insurance (PMI). While PMI protects lenders, it’s an added monthly cost for homeowners—often several hundred dollars. The good news? A local real estate appraiser can help you remove PMI sooner by documenting increased equity in your home.
What Is PMI and Why Does It Matter?
PMI is required on conventional loans when the loan-to-value ratio (LTV) is above 80%. Once you reach 20% equity, you can request PMI removal. Many homeowners think this only happens after years of payments—but thanks to rising home values in Chicago, that timeline could be shorter.
Chicago Home Values Are Climbing
In recent years, home prices have surged in neighborhoods like Logan Square, Avondale, West Loop, and many North Shore suburbs. If your home has appreciated since purchase, you may already have enough equity to cancel PMI.
Hiring a real estate appraiser to evaluate your current property value is the first step. If the appraisal confirms you have at least 20% equity, you can submit it to your lender to request PMI cancellation.
What to Expect From an Appraisal
A real estate appraiser assesses your home using comparable property data, market trends, and overall condition. In Chicago, a typical appraisal costs between $350 and $600—but the savings from removing PMI can far exceed that amount annually. So, it always good idea to remove the PMI expense as soon as you can to save on your monthly expenses.
Ready to Drop PMI?
If you’ve made home improvements or bought in a high-growth area, don’t wait. Reach out to a certified real estate appraiser and find out if your home qualifies for early PMI removal.