How to Remove PMI
Three routes: request cancellation at 80%, wait for automatic termination at 78%, or prove appreciation with a new valuation.
Key takeaways
- You can request cancellation when the balance reaches 80% of the original value, in writing, if you are current.
- The servicer must terminate automatically at 78% of the original value, based on the original amortization schedule.
- Final termination happens at the midpoint of the amortization period even if the LTV threshold has not been reached.
- Appreciation-based removal is possible but follows investor rules and usually requires a new appraisal you pay for.
- These protections apply to conventional loans, not to FHA annual MIP.
Short answer: write to your servicer once the balance hits 80% of the original value, and expect automatic termination at 78%. Both thresholds come from the Homeowners Protection Act and apply to most conventional loans on a primary residence.
Route 1: request cancellation at 80%
The request must generally be in writing. Servicers typically require that you are current on payments, have a clean recent payment history, and that no junior liens exist. They may require evidence that the property value has not declined, which usually means a valuation at your expense.
Route 2: automatic termination at 78%
When the balance reaches 78% of the original value under the original amortization schedule — not the balance you actually have after extra payments — the servicer must terminate PMI, provided you are current. You do not have to ask, and you should verify it happened on your statement.
Route 3: appreciation
If the property has risen in value, Fannie Mae and Freddie Mac guidelines allow cancellation based on a current valuation after a seasoning period, typically two years, with a lower LTV threshold if the loan is less than five years old. This is a program rule rather than a legal right, so the answer depends on who owns your loan.
- Call your servicer and ask which investor owns the loan and which cancellation policy applies.
- Ask exactly what valuation they accept and what it costs.
- Submit the request in writing and keep a copy.
- Check the following statement to confirm the premium has been removed.
Getting there faster
- Extra principal payments move the balance below 80% sooner, though automatic termination still follows the original schedule.
- A lump-sum payment to reach 80% can pay for itself quickly if PMI is expensive.
- Documented improvements can support a higher valuation for appreciation-based removal.
Frequently asked questions
- Does my servicer have to remove PMI automatically?
- Yes, on most conventional loans, at 78% of the original value if you are current on payments. There is also a final termination requirement at the midpoint of the amortization period.
- Will extra payments trigger automatic termination sooner?
- Automatic termination follows the original amortization schedule, but extra payments can let you request cancellation at 80% much earlier.
- Do I need an appraisal?
- Often yes for value-based cancellation, and the cost is usually yours. For schedule-based termination at 78% you should not need one.
Sources
- Consumer Financial Protection Bureau: When can I remove private mortgage insurance (PMI) from my loan? — accessed 2026-07-28
- Fannie Mae: Selling Guide: Termination of Conventional Mortgage Insurance — accessed 2026-07-28
- Freddie Mac: Seller/Servicer Guide: Mortgage insurance cancellation — accessed 2026-07-28
Educational content only. This is not a loan offer, and your actual terms depend on your lender, credit profile and property.