Private Mortgage Insurance (PMI) is one of the most frustrating monthly expenses for Chicago homeowners. It adds hundreds of dollars to a mortgage payment — and provides zero benefit to the homeowner. The good news? In 2026, more homeowners in Chicago, Logan Square, Portage Park, Avondale, and surrounding neighborhoods are removing PMI earlier than ever thanks to rising home values and professional appraisal support.
At TYKE Appraisals, we specialize in PMI removal appraisals that help homeowners eliminate unnecessary monthly costs and build equity faster. If you purchased your home with less than 20% down, or if your lender required PMI due to risk factors, you may now qualify to remove it — but only if you can prove your home’s current market value.
This guide explains how PMI removal works, why 2026 is the perfect time to request an appraisal, and how TYKE Appraisals helps Chicago homeowners save thousands per year.

What Is PMI — and Why Are Chicago Homeowners Paying It?

PMI is insurance that protects the lender, not the homeowner. It’s typically required when:
• The down payment is less than 20%
• The loan is considered higher risk
• The borrower has limited credit history
• The property type increases lender exposure

In Chicago, PMI is extremely common because:
• Many buyers use FHA or low‑down‑payment loans
• First‑time buyers often enter the market with 3–5% down
• Home prices in popular neighborhoods rise quickly
• Competition forces buyers to stretch financially
PMI can cost anywhere from $150 to $450 per month — money that could be going toward principal, savings, or home improvements.

Why 2026 Is the Best Time to Remove PMI

Chicago home values have increased significantly across many neighborhoods, including:
• Logan Square
• Portage Park
• Irving Park
• Avondale
• Belmont Cragin
• Hermosa
• Albany Park
Even modest appreciation can push a homeowner past the 20% equity threshold required to remove PMI.
For example:
• Home purchased in 2021 for $350,000
• Current value in 2026: $420,000
• Equity gained: $70,000
• PMI no longer required

But lenders won’t remove PMI automatically — they require proof, and that proof comes from a certified appraisal.

How PMI Removal Works in 2026

To remove PMI, lenders typically require:

✔

 A certified appraisal
This is the most important step. A professional appraiser determines your home’s current market value.

✔

 A written request to the lender
Homeowners must formally request PMI removal.

✔

 Good payment history
Most lenders require:
• No late payments in the last 12 months
• A clean mortgage record

✔

Sufficient equity
Most lenders require 20% equity, but some require 25% depending on loan type.
TYKE Appraisals provides the certified valuation needed to prove your equity position.

What TYKE Appraisers Look At

Our PMI removal appraisals analyze:
• Comparable sales in your neighborhood
• Market trends in Chicago
• Home condition and updates

• Lot size and location
• Renovations and improvements
• External factors (schools, transit, amenities)
We specialize in Chicago’s micro‑markets, where values can shift dramatically from block to block.
For example:
• A home near the 606 Trail may command a premium
• A renovated bungalow in Portage Park may outperform comps
• A multi‑unit conversion in Logan Square may require unique adjustments
This hyper‑local expertise is what makes TYKE Appraisals so effective.

 How Much Can You Save by Removing PMI?

Most Chicago homeowners save:
• $1,800 to $5,400 per year
• $18,000 to $54,000 over 10 years
Removing PMI is one of the fastest ways to reduce monthly expenses without refinancing.

Common Myths About PMI Removal

❌ Myth 1: PMI automatically drops off at 20% equity
Not true. Many lenders require 25% equity unless you request removal.

❌ Myth 2: You must refinance to remove PMI
Incorrect. A certified appraisal is usually enough.
❌ Myth 3: Zillow or online estimates count
Lenders do not accept online valuations.
❌ Myth 4: PMI removal is complicated
With the right appraisal, the process is straightforward.

Why Chicago Homeowners Choose TYKE Appraisals

TYKE Appraisals is trusted throughout Chicago for:
• Certified, lender‑approved PMI removal appraisals
• Fast scheduling and quick turnaround
• Hyper‑local market expertise
• Clear, defensible valuations
• Professional communication with homeowners and lenders
• Experience with FHA, conventional, and portfolio loans
We understand Chicago’s neighborhoods, property types, and market trends — and we know exactly what lenders require.

Final Thoughts

PMI is one of the most unnecessary expenses homeowners face — and in 2026, rising Chicago home values mean thousands of homeowners now qualify to remove it. A certified appraisal from TYKE Appraisals provides the proof lenders need to eliminate PMI and reduce your monthly mortgage payment.
If you live in Logan Square, Portage Park, Avondale, Irving Park, or any surrounding Chicago neighborhood, TYKE Appraisals is here to help you remove PMI quickly, confidently, and professionally.