How to remove PMI: four ways to stop paying mortgage insurance

If you bought a home with less than 20% down on a conventional loan, you likely pay private mortgage insurance (PMI). It protects the lender, not you, and Freddie Mac estimates it at about $30 to $70 a month for every $100,000 borrowed. The good news: it isn’t permanent. Here are the four ways PMI comes off, and a worked example of what each can save.

Four ways PMI comes off

The first three come from the federal Homeowners Protection Act and apply to most single-family primary homes financed on or after July 29, 1999. The fourth depends on who owns your loan. Lenders and servicers can be more generous than the law, but not less.

What “original value” means

The 80% and 78% tests use your home’s original value: the lower of the purchase price or the appraised value when you bought. If you paid $350,000 and the home appraised at $355,000, the original value is $350,000. Today’s value only matters on the current value path below.

Requesting cancellation at 80%

According to the CFPB, your servicer must grant a written request to cancel PMI once your balance reaches 80% of the original value, if you:

• Ask in writing. Your servicer may have a form for this.
• Have a good payment history and are current. Fannie Mae’s rule, for example, is no payment 30 or more days late in the last 12 months and none 60 or more days late in the last 24 months.
• Certify there are no second liens, such as a HELOC or home equity loan.
• Show the value hasn’t dropped below the original value. Your servicer may order a valuation, and you may pay for it.

You don’t have to wait for your schedule. If extra principal payments bring your balance to 80% early, you can ask then. Check your monthly statement or your amortization schedule to see where you stand.

Automatic and final termination

If you never ask, PMI still ends. Your servicer must stop it on the date your balance is scheduled to reach 78% of the original value, based on your original amortization schedule, as long as you’re current. If you’re behind on that date, it ends soon after you catch up.

There’s also a backstop: final termination the month after the midpoint of your loan term. On a 30-year loan, that’s after 15 years, even if your balance hasn’t reached 78%.

Using a higher home value

If your home has gained value, you may be able to drop PMI based on what it’s worth today. This isn’t part of the federal law; it depends on the rules of the company that owns your loan. For a one-unit primary home or second home owned by Fannie Mae, the loan-to-value limits are:

Source: Fannie Mae Servicing Guide B-8.1-04. Your servicer orders the valuation, and the same payment history rules apply. Qualifying improvements are renovations such as a kitchen or bathroom remodel or added square footage, not routine repairs. Freddie Mac and other loan owners have their own rules, so ask your servicer which apply to you.

One recent change: in September 2026, Fannie Mae said servicers may now reach out to borrowers who are close to, or have reached, the loan-to-value levels for ending mortgage insurance. You don’t have to wait for that call, though. You can ask any time.

A worked example on a $350,000 home

Say you bought a $350,000 home with 5% down: a $332,500 conventional loan for 30 years at an assumed 7.00% rate. Principal and interest is $2,212 a month. Using Freddie Mac’s estimate of $30 to $70 a month per $100,000 borrowed, PMI would be about $100 to $233 a month.

Try your own numbers in the extra payment calculator and see your month-by-month balance in the amortization schedule. Before prepaying, weigh other goals, such as an emergency fund.

FHA, VA and lender-paid insurance

• FHA loans: the 80% and 78% rules don’t apply. For FHA loans with case numbers assigned on or after June 3, 2013, the annual premium lasts 11 years if you put down at least 10%. With less than 10% down, it lasts for the loan term. Refinancing into a conventional loan is a common way to stop paying it sooner. Our FHA vs. conventional guide compares the two.
• VA loans: VA says its purchase loans don’t require PMI or monthly mortgage insurance, so there’s nothing to remove. A one-time VA funding fee may apply instead.
• Lender-paid mortgage insurance: if your lender pays the mortgage insurance instead of you, the CFPB says different rules apply. Ask your servicer how it works on your loan.

Should you refinance to drop PMI?

If your home has gained a lot of value, refinancing into a new loan at 80% or less of today’s value can remove PMI too. But a refinance has closing costs and a new rate. If today’s rate is higher than yours, you could end up paying more overall. It can make sense to ask about the current value path first, since it keeps your existing rate. If you’re weighing a refinance anyway, our refinance break-even guide and the refinance calculator show when the math works.

How to request PMI removal, step by step

1. Find your numbers. Your original value and current balance are on your closing documents and monthly statement. Your servicer can tell you who owns the loan.
2. Call or log in to your servicer and ask for its PMI cancellation requirements and form.
3. Ask which valuation it needs and what it will cost you.
4. Send a written request, and keep a copy with the date you sent it.
5. Watch your next statements to confirm the PMI charge is gone. If your request is denied, ask for the reason in writing.

Not sure where you stand? Ask Lowi™ to walk through your loan, or set rate alerts if a refinance might make sense later. Kwalifai never sells your number to lenders.