Refinancing Your Investment Property: How Landlords in Miami & Dallas Can Boost Rental Income
Learn how landlords in Miami and Dallas can boost rental income with a smart investment property refinance.
7 Min
If you’re a homeowner in Broward County — whether in Fort Lauderdale, Hollywood, or Coral Springs — you might be paying hundreds of extra dollars each month for something you don’t even need: PMI.
Private Mortgage Insurance (PMI) is often required when you buy a home with less than 20% down. But once you’ve built enough equity, you could ditch PMI and save a lot, just by refinancing. Understanding the loan-to-value ratio (LTV) is crucial for tracking when you can request PMI cancellation.
At Rate Leaf, we’re all about showing South Florida homeowners how to slim down their mortgage costs. Let’s dive into how refinancing can help you say goodbye to PMI — and hello to more money in your pocket.
Refinancing a mortgage can be an effective way to get rid of private mortgage insurance (PMI) and reduce monthly mortgage payments. By refinancing to a new loan with a lower balance, homeowners can eliminate PMI and potentially lower their interest rate. This can be especially beneficial for those who have built significant equity in their home through extra mortgage payments or rising property values. It’s essential to weigh the costs and benefits of refinancing, including closing costs and potential changes to the loan term, to determine if it’s the right decision for your financial situation. Homeowners can use a refinance calculator to estimate the potential savings and determine if refinancing is worth paying for.
PMI stands for Private Mortgage Insurance. Lenders require it to protect themselves when borrowers put down less than 20% on a home purchase using a conventional mortgage.
It usually costs between 0.5% to 1% of your loan amount annually. For many Broward homeowners, that’s an extra $100 to $300 per month — money that isn’t helping you build equity. Borrowers typically have to pay private mortgage insurance if their down payment is less than 20%.
Mortgage insurance, including private mortgage insurance (PMI) and mortgage insurance premiums (MIP), is designed to protect lenders against the risk of borrower default. PMI is typically required for conventional loans with down payments of less than 20%, while MIP is associated with FHA loans. Understanding the differences between these types of insurance and how they affect monthly mortgage payments is crucial for homeowners. By knowing the loan-to-value (LTV) ratio and the terms of their mortgage, homeowners can determine when they can request PMI removal or cancellation. It’s also important to consider the cost of mortgage insurance and how it can impact the overall cost of homeownership.
Most lenders will remove PMI when you reach at least 20% equity in your home. Homeowners can drop PMI by reaching certain equity thresholds.
You can usually hit this milestone in a few ways:
There are various ways to get rid of PMI, including refinancing and making extra payments.
✅ Want to find out if your home qualifies to ditch PMI? 👉 Get prequalified today with Rate Leaf!
Fannie Mae and Freddie Mac play a significant role in the mortgage industry, including the issuance of conventional loans with private mortgage insurance (PMI). These government-sponsored enterprises provide guidelines for lenders to follow when originating and servicing mortgages. For homeowners looking to remove PMI, Fannie Mae and Freddie Mac’s requirements must be met, including a minimum loan-to-value (LTV) ratio and a good payment history. By understanding the role of Fannie Mae and Freddie Mac, homeowners can better navigate the process of getting rid of PMI and reducing their monthly mortgage payments.
The Homeowners Protection Act of 1998 provides federal law protections for homeowners regarding private mortgage insurance (PMI). Under this law, lenders are required to automatically cancel PMI when the loan-to-value (LTV) ratio reaches 78% or the midpoint of the loan term, whichever comes first. Homeowners also have the right to request PMI cancellation when the LTV ratio reaches 80%. It’s essential for homeowners to understand their rights under federal law and to know how to request PMI removal or cancellation. By being informed, homeowners can ensure they are treated fairly by lenders and can make the most of their mortgage.
A refinance allows you to replace your current mortgage with a new one, based on your home’s updated value. If your home’s value has risen enough, your new mortgage might not require PMI at all. If you have recently refinanced, the new appraised value can be used to determine when PMI can be canceled.
For example:
In this case, you now have over 25% equity, meaning refinancing could eliminate PMI immediately. Obtaining a new appraisal can help demonstrate an increase in home value, which may allow for early PMI removal.
Getting rid of PMI isn’t the only advantage to refinancing. When you refinance, you might also:
Unlike conventional loans, VA loans do not require mortgage insurance, which can be a significant saving.
All these moves could lower your monthly payment — or help you pay off your home faster.
✅ Curious how much you could save monthly? 👉 Check your refinance options here with Rate Leaf!
Broward County home prices have seen huge appreciation over the past few years. If your home value has risen by 20% or more, refinancing could wipe out PMI and put those savings back in your hands.
An increase in the home's value can help homeowners reach the equity needed to remove PMI.
If you bought your home with an FHA loan, you know the pain: FHA mortgage insurance doesn’t automatically disappear. FHA loans are government-backed mortgages with different PMI requirements compared to conventional loans. The only real way to ditch it? Refinancing into a conventional loan once you have enough equity.
If your credit score is significantly better than when you first bought your home, you could qualify for a refinance with better rates and PMI removal as a bonus. Homeowners should contact their mortgage servicer to request PMI removal if their credit score has improved.
✅ Think you’re ready to ditch PMI? 👉 Let’s start your refinance prequalification today!
At Rate Leaf, we make refinancing simple and stress-free. Here’s what it looks like:
Plus, you’ll have a dedicated Rate Leaf advisor guiding you through each step, with no confusion and no surprises.
✅ Want to explore more smart mortgage tips? 👉 Visit our Mortgage Diet blog!
Refinancing replaces your existing mortgage with a new one — often to lower your interest rate, reduce your monthly payment, shorten your loan term, or tap into home equity. At Rate Leaf, we make refinancing simple and help you choose the best strategy for your goals.
Additionally, refinancing can adjust the loan's term, which may impact the overall cost of the mortgage.
Yes! If you have built at least 20% equity in your home, you may be able to refinance and eliminate PMI (Private Mortgage Insurance), saving you hundreds of dollars each month. Refinancing is a common method to remove private mortgage insurance and save money. Our advisors will review your home’s value and loan options to help you ditch PMI.
Absolutely! If your credit score is higher now than when you first got your mortgage, you may qualify for a better interest rate through refinancing. A new appraised value can help determine eligibility for PMI removal during refinancing. Rate Leaf helps you compare options and maximize your savings based on your improved credit profile.
Refinancing typically includes costs like appraisal fees, lender fees, title fees, and other closing costs, usually totaling 2% to 5% of your new loan amount. At Rate Leaf, we offer transparent quotes upfront, so you know exactly what to expect before you commit.
Homeowners can choose to pay refinancing costs in a lump sum or roll them into the new loan.
It can be! If interest rates have dropped since you first got your mortgage, your home’s value has increased, or you want to consolidate debt or remove PMI, refinancing in 2025 could be a smart financial move. PMI can be removed when the mortgage drops to 78% of the home's original purchase price. Rate Leaf can help you decide if now’s the right time based on your unique situation.
✅ Have questions about refinancing your home? 👉 Get in touch or start your prequalification here.
Paying PMI every month when you don’t have to is like throwing money out the window. If you live in Broward County, there’s a good chance your home’s value has climbed, and you’re in the perfect spot to refinance, ditch PMI, and start saving.
Homeowners should submit a written request to their lender to initiate the PMI removal process.
👉 Don’t wait — start your free refinance prequalification today!
At Rate Leaf, we’re ready to help you lighten your mortgage load and keep more of your hard-earned money where it belongs: with you.
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