PMI removal refers to the process of eliminating Private Mortgage Insurance, which is typically required by lenders when a borrower makes a down payment of less than 20% on a home purchase. PMI serves to protect the lender in case the borrower defaults on the loan. Once a homeowner builds enough equity in their home, usually through regular mortgage payments or home value appreciation, they can request the removal of PMI. This often involves meeting specific criteria set by the lender, such as a certain loan-to-value ratio (usually 80% or less). Once approved, the borrower will no longer need to pay the monthly PMI premium, resulting in reduced mortgage payments.