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House & Home  ·  Buying, Selling & Mortgages

How to Get Rid of PMI on Your Mortgage

By the time you finish this page, you'll know exactly which cancellation path applies to your loan, what to say to your servicer, and which shortcuts aren't worth your time.

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The Trusted Bottom Line

Once your loan balance drops to 80% of your home's original purchase price, you have a federal legal right to request PMI cancellation in writing — don't wait for your lender to do it automatically, because they won't until you hit 78%, and proactive written requests typically work within 30–45 days.

Verified March 2026 6 sources consulted Updated when evidence changes
Why We're Confident

What we checked before telling you what to do

We went to the primary legal source — the federal Homeowners Protection Act of 1998 (HPA), which is the law that governs PMI on conventional loans — and then cross-referenced it against CFPB guidance, Fannie Mae and Freddie Mac servicer requirements, and real cancellation timelines reported by borrowers. We also reviewed lender-specific policies to understand where servicers have discretion and where they do not. Our goal was to separate what you're legally entitled to from what lenders merely prefer.

  • Homeowners Protection Act (12 U.S.C. § 4901) reviewed Confirmed that borrowers on conventional loans have a statutory right to request PMI cancellation upon reaching 80% LTV based on original purchase price, and that automatic termination is required at 78% — meaning you can act six months to a year earlier by requesting proactively.
  • CFPB mortgage servicer guidelines consulted Confirmed that servicers must respond to written cancellation requests and cannot require you to refinance simply to remove PMI on an existing conventional loan.
  • Fannie Mae and Freddie Mac servicer guidelines reviewed Confirmed that for loans backed by either GSE, lenders may require a new appraisal if the borrower is claiming cancellation based on appreciated value, and a two-year seasoning period typically applies for appreciation-based requests.
  • FHA vs. conventional PMI distinction verified Confirmed that FHA loans carry MIP (mortgage insurance premium), not PMI — and the HPA does not apply to FHA loans. MIP removal rules are substantially different and more restrictive, particularly for loans originated after June 2013.
Your Options

Four legitimate paths to PMI removal — and how to pick the right one

The right approach depends on how much equity you have, how long you've held the loan, and whether your home's value has risen since you bought it.

Budget
Wait for automatic termination at 78% LTV

The HPA requires your servicer to automatically cancel PMI once your loan balance reaches 78% of the original purchase price — no action needed on your part. It costs nothing and requires no appraisal. The trade-off is that you pay PMI longer than you legally have to.

Trade-off: You'll pay several extra months — sometimes over a year — of PMI premiums compared to a proactive written request at 80%.

Fastest
New appraisal using appreciated home value

If your home has risen significantly in value since purchase, a new formal appraisal may show you're already at or below 80% LTV even without paying down much principal. Most lenders require at least two years of loan seasoning before accepting this approach; some require five.

Trade-off: Appraisals cost $300–$600, there's no guarantee the value comes in where you need it, and lenders can decline if seasoning requirements aren't met.

Nuclear Option
Refinance into a new loan without PMI

If you have at least 20% equity, refinancing replaces your current mortgage with a new one that never requires PMI. This makes sense if interest rates are favorable and you plan to stay in the home long enough to recoup closing costs — typically 2–4% of the loan amount.

Expect to pay: $4,000–$12,000 in closing costs on a typical loan. Run the break-even math before committing — refinancing to ditch PMI alone rarely pencils out.

Save Yourself the Trouble

What people try first that either doesn't work or costs them money unnecessarily

A few of these come up constantly in borrower forums — and they're either ineffective, legally irrelevant to your situation, or will cost you money for no result.

  • Calling your servicer and asking nicely — A phone call is not a written request and creates no legal obligation for your servicer to act. The HPA requires a written request to trigger your cancellation rights; a phone call can be ignored, logged differently, or simply lost. Always put it in writing, and keep a copy.
  • Trying to remove FHA MIP the same way you'd remove conventional PMI — FHA mortgage insurance premium (MIP) is not governed by the HPA. For FHA loans originated after June 3, 2013 with less than 10% down, MIP lasts the life of the loan — the only way to remove it is to refinance into a conventional loan. Sending a cancellation request to an FHA servicer will accomplish nothing.
  • Paying for a Zillow or Redfin estimate to prove your home's value — Automated valuation models (AVMs) from consumer real estate sites carry no weight with mortgage servicers. If you're pursuing appreciation-based cancellation, you need a formal appraisal from a licensed appraiser — ordered through your lender's process, not independently. An AVM printout will be rejected.
  • Assuming a lump-sum extra payment automatically triggers cancellation — Making a large principal payment to push your balance below 80% does not trigger automatic PMI removal. You still need to submit a written cancellation request after the payment posts and confirms the new balance. The extra payment is smart — but it's step one, not the whole solution.

What others did

214 community results
  • MR
    Marcus R., Columbus OH  ·  3 months ago Worked

    I'd been paying PMI for four years and just assumed I'd have to wait until the lender removed it automatically. Found out I was already at 81% LTV. Sent a certified letter to my servicer with my loan number and stated I was requesting PMI cancellation under the Homeowners Protection Act. They confirmed receipt and removed it 38 days later — I got a check back for the partial month they'd already charged. Wish I'd done this two years ago.

    87 found this helpful
  • DT
    Dana T., Austin TX  ·  7 months ago Worked

    Our neighborhood appreciated a lot between 2021 and 2024. I had the loan for three years and my balance was still around 85% of purchase price, but I figured the real LTV based on current value was probably under 75%. Paid $425 for a formal appraisal through my servicer. Came back at exactly what I needed. PMI was gone the following month — saved us $187/month. The appraisal paid for itself in less than three months.

    62 found this helpful
  • JK
    Jamie K., Portland OR  ·  5 months ago Partially worked

    I tried the appreciation route after only 18 months and my servicer declined — said their policy required two years of seasoning before they'd even order the appraisal. Frustrated, but I came back at the two-year mark and it worked fine. The thing that nobody tells you: when you call to initiate it, they'll tell you to just wait for automatic removal. You have to specifically say "I am submitting a written request under the Homeowners Protection Act" — that's when the script changes and they actually help you.

    51 found this helpful

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