How to Remove PMI From Your Mortgage
Private mortgage insurance can cost $30–$70 per month for every $100,000 borrowed. Here's exactly how to cancel it on a conventional loan — and how to get there years early.
What is PMI — and why you're paying it
Private mortgage insurance (PMI) is an insurance policy that protects your lender if you stop paying. On a conventional loan you're charged PMI whenever your down payment is under 20% (a loan-to-value, or LTV, above 80%). It does nothing for you directly — so the goal is simple: cancel it as soon as you legally can.
The two rules that end PMI (Homeowners Protection Act)
Federal law gives every borrower with conventional, borrower-paid PMI two off-ramps:
| Threshold | What happens | Based on |
|---|---|---|
| 80% LTV | You may request cancellation in writing | Original value, your schedule (or current value via appraisal) |
| 78% LTV | Servicer must cancel automatically | Original value + original amortization schedule |
| Midpoint of loan | Cancels if still active (e.g. year 15 of a 30-yr loan) | Original schedule |
You must be current on payments. The 78% automatic date is locked to your original schedule — extra payments don't move it. That's the whole reason it pays to reach 80% early and request removal yourself.
6 ways to remove PMI faster
- Pay down to 80% and request it. The single cleanest path. Use the calculator to find the month you cross 80%.
- Make extra principal payments. Even $100–$200/month can pull your request date in by years. The calculator's "Speed it up" panel shows exactly how much.
- Use a lump sum. A tax refund, bonus, or windfall applied to principal can trigger cancellation eligibility immediately.
- Get a new appraisal after appreciation. If your home's value rose, your current LTV may already be at 80% (or 75% if you've owned it under 2 years). Order an appraisal and request removal based on current value.
- Document home improvements. Renovations that raise value (kitchens, additions) can push you to the equity threshold sooner — an appraisal captures them.
- Refinance. If rates allow and you're above 20% equity, a refinance ends PMI — though closing costs mean this only wins in specific situations.
How to request PMI cancellation (step by step)
- Confirm you're at (or near) 80% LTV with the calculator.
- Check your loan is current and has no second mortgage that breaks the rules.
- Send a written cancellation request to your servicer (see the sample below).
- Be ready to pay for an appraisal if you're claiming current-value equity.
- Get the confirmation in writing and verify PMI disappears from your next statement.
Sample PMI cancellation request letter
Dear [Servicer],
Re: Loan #[number]. I am requesting cancellation of private mortgage insurance on the above loan under the
Homeowners Protection Act. Based on my payments, the principal balance has reached 80% of the original value
of the property. My payments are current. Please confirm cancellation in writing and advise if an appraisal
is required. Thank you, [Name, date, contact].
Important: FHA loans are different
This guide and calculator cover conventional loans. FHA loans carry MIP, which often lasts the life of the loan unless you put 10%+ down — the usual way out is refinancing into a conventional loan once you have 20% equity.
Common mistakes that delay PMI removal
- Waiting for the servicer instead of requesting at 80%.
- Assuming rising home value cancels PMI automatically — it doesn't; you must request an appraisal-based review.
- Missing payments, which pauses your eligibility.
- Forgetting that the 78% automatic date uses the original schedule, not your extra payments.
Educational information only, not financial or legal advice. PMI rules and servicer requirements vary — confirm details with your loan servicer. Last updated June 2026.