Private mortgage insurance (PMI) adds to your monthly payment, but you do not have to pay it forever. This guide explains how to remove PMI with five practical approaches.
The short answer: PMI can usually be removed when your loan balance reaches 80% of the home's value, and it is automatically canceled at 78%. You can also remove it with a new appraisal or by refinancing. See our refinance page, FHA home loan info, and the FHA vs conventional guide.
What PMI is and why you pay it
PMI protects the lender if you default. It is usually required on conventional loans when you put down less than 20%. It is separate from FHA mortgage insurance, which has its own rules.
Automatic cancellation and the 78% rule
For conventional loans, the lender must automatically cancel PMI when your balance reaches 78% of the original home value — as long as you are current on payments and do not have a high-risk loan.
Requesting removal at 80%
You can request PMI removal when your balance reaches 80% of the original value. You may need to:
- Be current on payments
- Have a good payment history
- Prove the home has not lost value
Using a new appraisal after home value growth
If your home has appreciated, you may be able to remove PMI sooner by getting a new appraisal. If the new value shows your loan is at or below 80% loan-to-value, the lender may cancel PMI. Rules vary by lender and loan type.
FHA mortgage insurance: refinancing to conventional
FHA mortgage insurance works differently. For many FHA loans, mortgage insurance lasts for the life of the loan. A common way to remove it is to refinance into a conventional loan once you have enough equity.
Steps to contact your servicer
- Check your current loan-to-value ratio
- Confirm you meet your lender's removal requirements
- Submit a written removal request
- Provide an appraisal if required
- Get confirmation in writing
When you are ready, get a free quote or set up rate alerts.
This article is for general information only and is not a commitment to lend. PMI removal rules depend on your loan type, lender, and payment history.
