INTRO — The direct answer
You can remove private mortgage insurance (PMI) from a conventional mortgage — usually without refinancing. For most conventional loans covered by the Homeowners Protection Act, you can request cancellation once your balance hits 80% of the home’s original value, and your servicer must automatically cancel it at 78% if you’re current on payments.
PMI isn’t permanent — but the exact path depends on your loan type, payment history, home value, and servicer. FHA loans follow different rules (they use MIP, not conventional PMI).
Use our free PMI calculator to see your current monthly PMI, then follow the steps below.
What Is PMI?
Private mortgage insurance (PMI) is a policy that protects the lender — not you — if you default. It’s required on conventional loans when you put down less than 20% (loan-to-value, LTV, above 80%), because a smaller down payment means more risk to the lender.
You pay the premium, but the coverage belongs to the lender. Two things matter up front:
- PMI applies to conventional loans. FHA loans use a different product, MIP, with different removal rules — covered in its own section below.
- PMI is temporary for most borrowers. Once you build enough equity, you can have it removed.
When Can PMI Be Removed?
For most conventional loans covered by the Homeowners Protection Act (HPA), there are two trigger points:
- 80% LTV (by request): When your principal balance first reaches 80% of the home’s original value, you can ask your servicer to cancel PMI.
- 78% LTV (automatic): When your balance is scheduled to reach 78% of the original value, your servicer must automatically terminate PMI — if you’re current.
These thresholds use your loan balance and the home’s original value (generally the lesser of the purchase price and the appraised value at purchase, or the appraisal value at refinance) — not current market value and not a fixed number of years.
Scoped carefully: The HPA’s 80%/78% rights apply to loans covered by the Act. Government-backed loans, some jumbo loans, and loans insured differently have their own rules. Confirm your cancellation terms in writing with your servicer. Your PMI disclosure form (received at closing) shows the date you can first request cancellation.
What Is the 80% PMI Rule?
The 80% rule is the borrower-requested threshold. Once your principal balance reaches 80% of the home’s original value — by scheduled amortization or extra principal payments — you can request cancellation in writing.
To qualify, you generally need:
- A written request to your servicer.
- A good payment history and being current on the loan.
- No junior liens (like a second mortgage) on the property.
- Evidence the home’s value hasn’t declined below original value (typically an appraisal, which you may pay for).
Extra principal payments can bring the 80% date forward — that’s the “early” path to removal.
What Is the 78% PMI Rule?
The 78% rule is the automatic termination threshold. Under the HPA, your servicer must automatically remove PMI when your balance is scheduled to reach 78% of the original value (based on the original amortization schedule, or the ARM’s schedule for adjustable-rate loans).
Key differences from the 80% rule:
- Automatic: no request needed.
- Scheduled, not actual: extra payments do not move this date (that’s what the 80% request path is for).
- No appraisal: current value isn’t a factor, and the servicer can’t require one.
- You must be current on payments; if you’re behind, PMI stays until shortly after you catch up.
If your loan hits 78% and PMI remains, contact your servicer — automatic termination is a legal requirement for covered loans.
How to Request PMI Cancellation
The practical path for most borrowers at (or approaching) 80% LTV:
- Track your balance and LTV — compare your principal balance to 80% of the home’s original value.
- Clean up payment history — be current and able to show a good record.
- Check for junior liens — a second mortgage or HELOC can block cancellation.
- Write to your servicer — send a written request and ask what evidence they require (often an appraisal).
- Confirm the result — if approved, verify your monthly payment drops; if denied, ask for the reason in writing.
CTA: Not sure where you stand? Estimate your current monthly PMI with our free PMI calculator so you can see what removing it would save.
How to Estimate Your Loan-to-Value Ratio
LTV = (Principal balance ÷ home value) × 100
For HPA timing, use the home’s original value. For lender/investor early-removal programs, some use current value (with a new appraisal) — that’s why two servicers can quote different numbers.
Worked example (hypothetical):
- Home bought for $300,000, loan of $270,000 (10% down) → LTV 90%.
- Pay the balance down to $240,000 → LTV 80% → request cancellation.
- When the balance is scheduled to reach $234,000 (78%) → automatic termination (if current).
Can You Remove PMI Early?
Yes, in several common ways — most reduce balance to 80% LTV or satisfy a lender rule:
- Extra principal payments — advance the 80% request date.
- Appraisal-based removal — some lenders let you cancel earlier using current value; you typically pay for the appraisal. This is not a guaranteed HPA right.
- Refinancing — into a conventional loan with ≥20% equity removes PMI; weigh closing costs.
- Lender-paid PMI (LPMI) — some loans structure PMI into the rate; compare the long-term cost.
Caveat: If your home’s value declined below original value, you may not be able to request cancellation on schedule, and appraisal-based removal isn’t guaranteed.
Does Home Value Affect PMI Removal?
It depends on the path:
- HPA 80% request and 78% automatic: No — both use original value and your principal balance, not current value.
- Lender/investor early-removal programs: Often yes — a rising home value (via appraisal) can put your LTV at 80% sooner.
So a stronger market can help you remove PMI earlier — but it doesn’t change your guaranteed HPA rights, which stay anchored to original value.
What If You Have an FHA Loan? (MIP, not PMI)
FHA loans do not use conventional PMI. They use FHA mortgage insurance premium (MIP), set by the Federal Housing Administration (HUD) — and the UCT PMI calculator estimates conventional PMI, not FHA MIP.
MIP includes an upfront premium and a monthly/annual premium. Removal depends mostly on when your loan originated and your down payment:
- Originated before June 3, 2013: Many of these loans can cancel MIP at 78% LTV on the original appraised value (with good payment history and, for some terms, a time-in-loan requirement).
- Originated on/after June 3, 2013: MIP cancels only if you put down at least 10% — and then it’s after 11 years. Under 10% down, MIP lasts the life of the loan.
- If you’re not eligible: Refinance into a conventional loan. With ≥20% equity you can eliminate MIP and avoid new conventional PMI.
HUD updates premium amounts over time — the structural rules above (78% / 11 years / life-of-loan) are durable, but current rates are set by HUD. Check current HUD guidance or ask your servicer.
PMI vs FHA Mortgage Insurance
| Conventional PMI | FHA MIP | |
|---|---|---|
| Loan type | Conventional | FHA-insured |
| Removal trigger | 80% by request / 78% automatic (HPA) | 78% LTV (older loans) or 11 years with ≥10% down (newer loans) |
| Life of loan? | Usually no | Yes if <10% down on newer loans |
| Based on | Original value / lender rules | Origination date + down payment |
| Refinance to remove? | Usually unnecessary | Often the main path |
They’re not interchangeable — “get rid of PMI on an FHA loan” is really a question about MIP.
Use a PMI Calculator (and a removal tracker)
The math that matters for removal:
- Current monthly PMI — what you’re paying now.
- LTV at purchase and today — track your balance against original value.
- 80% / 78% balance points — the thresholds that unlock cancellation.
Enter your loan amount and down payment into our free PMI calculator to see your monthly cost, then plan around the balance thresholds above.
PMI Removal Checklist
- Confirm loan type (conventional = PMI; FHA = MIP)
- Find original value (purchase price/appraisal, or refinance appraisal)
- Get current principal balance from your servicer
- Compute LTV = (balance ÷ original value) × 100
- If ≥80% LTV: submit a written cancellation request (current, good payment history, no junior liens, value evidence)
- If scheduled to hit 78%: confirm automatic termination and that your payment is current
- If using appraisal/current-value path: confirm it’s your lender’s program and compare appraisal fees
- If FHA and ineligible for the 11-year/78% path: compare a conventional refinance (closing costs vs. monthly savings)
- Keep a record of your request and the servicer’s written response
Frequently Asked Questions
For most conventional loans, request cancellation at 80% LTV on the original value (in writing, current, no junior liens), or wait for automatic termination at 78%. Extra principal payments advance the 80% date.
At 80% of the original value by request and automatically at 78% for covered conventional loans — based on balance vs. original value, not years or current value.
Often yes — extra principal payments, a lender’s appraisal/current-value program, or refinancing with ≥20% equity. Compare costs; HPA rights use original value.
For most conventional loans, yes — the 80% request and 78% automatic paths don’t require refinancing. FHA MIP is different: newer FHA loans with <10% down often need a refinance to remove MIP.
FHA loans use MIP. Eligibility tracks origination date and down payment: older loans may cancel at 78% LTV; loans from June 3, 2013 onward cancel at 11 years only with ≥10% down, otherwise MIP is for life. If ineligible, a conventional refinance is usually the way out.
Refinancing into a conventional loan with ≥20% equity removes PMI, but weigh closing costs against savings — extra principal payments may be cheaper if you’re near 80%.
The HPA’s guaranteed rights use original value; some lender programs and the FHA 78% path use appraisal/current value. The “value” depends on the specific rule — ask your servicer which one applies.
Finance disclaimer: This article is for general educational and informational purposes only and does not constitute financial, lending, or mortgage advice. PMI and FHA MIP cancellation rules vary by loan type, lender, servicer, and investor guidelines; the Homeowners Protection Act applies to loans it covers, not all mortgages. Always confirm your specific PMI or MIP removal terms with your lender or mortgage servicer.