How to Cancel PMI on Your Mortgage

Quick answer: You can cancel private mortgage insurance (PMI) when your loan balance reaches 80% of your home's original value — if you submit a written request, have a good payment history, and meet your servicer's requirements. PMI must automatically terminate at 78% loan-to-value (LTV) under the Homeowners Protection Act (HPA), as long as your loan is current.

PMI is not permanent on conventional loans. Federal law gives you a clear path to remove it once you build enough equity.

When Can You Cancel PMI?

The Homeowners Protection Act (HPA) sets two key LTV thresholds based on your home's original value — not today's market price:

Trigger	LTV	Who acts	Requirement
Borrower request	80%	You submit written request	Good payment history, no subordinate liens, property value has not declined
Automatic termination	78%	Servicer must cancel	Loan must be current on payments

Your servicer must tell you the projected cancellation date when you close. That date is based on your amortization schedule — when principal paydown alone brings you to 80% or 78% LTV.

Good payment history generally means no payments 30+ days late in the past 12 months and no 60+ day late payments in the past 24 months (per HPA and most servicer guidelines).

How to Request PMI Cancellation

Follow these steps when you believe you have reached 80% LTV:

1. Check your loan balance. Log into your servicer portal or review your statement. Compare your balance to 80% of your original home value. On a $300,000 original value, 80% LTV equals a $240,000 balance.

2. Call your servicer. Confirm their specific requirements before submitting paperwork. Ask whether they need a new appraisal.

3. Get an appraisal if required. If home values in your area rose, an appraisal showing your property still meets value requirements can help. Typical cost: $300 to $500.

4. Submit a written cancellation request. Send a letter or use your servicer's online form. Include your loan number, property address, and the date you reached 80% LTV.

5. Certify no subordinate liens. You must confirm you have not taken out a home equity loan or second mortgage against the property.

6. Wait for confirmation. Servicers typically respond within 30 days. PMI should stop on the first day of the month after approval.

If you make extra principal payments, you may reach 80% LTV ahead of schedule. HPA allows cancellation based on actual payments, not just the original amortization schedule.

Servicers must also terminate PMI at the midpoint of your loan term if you have not already cancelled — for a 30-year loan, that is year 15, provided you are current on payments.

How Long Does It Take to Reach 80% LTV?

It depends on your down payment, interest rate, and whether you pay extra toward principal.

Example: You buy a $300,000 home with 10% down ($30,000). Your loan is $270,000 at 7% on a 30-year fixed rate.

• Monthly principal and interest: about $1,796
• 80% LTV target balance: $240,000 (80% of $300,000 original value)
• Time to reach $240,000 through regular payments alone: about 8 years and 5 months (101 payments)

With 20% down ($60,000), you never have PMI on a conventional loan — you start at 80% LTV from day one.

Making an extra $200/month toward principal can shave 1 to 2 years off the timeline to 80% LTV.

What If Your Home Value Increased?

Rising home values do not change the HPA's original value rule for standard cancellation. Your servicer compares your loan balance to what the home was worth when you bought it — not today's price.

However, if your home value increased, you may qualify for cancellation sooner through your servicer's current value program (separate from HPA):

• You request cancellation based on a new appraisal
• Your LTV must be 80% or less using current appraised value
• Appraisal cost: typically $300 to $500
• Servicer confirms no subordinate liens and good payment history

Example: You bought at $300,000 with 10% down ($270,000 loan). After 5 years, your home appraises at $380,000. Your balance is $255,000. Current LTV: $255,000 ÷ $380,000 = 67%. You may qualify to cancel PMI early even though you have not reached 80% of the original $300,000 value through paydown alone.

Not all servicers offer this option. Call and ask about "PMI removal based on current appraised value."

PMI Cancellation vs MIP — FHA Loans Are Different

PMI applies to conventional loans with less than 20% down. FHA loans use MIP (mortgage insurance premium), not PMI — and the rules are stricter.

For FHA loans with case numbers assigned on or after June 3, 2013:

• Less than 10% down: MIP lasts for the life of the loan
• 10% or more down: MIP cancels after 11 years

FHA MIP includes 1.75% upfront plus 0.55% annual on most loans. You cannot cancel FHA MIP the same way you cancel conventional PMI.

See our article on VA and USDA loans for how government loan fees compare. To avoid PMI from the start, see how to avoid PMI.

Frequently Asked Questions

When can I cancel PMI?

You can request cancellation at 80% LTV of your home's original value with a written request and good payment history. PMI automatically terminates at 78% LTV if your loan is current.

How do I request PMI cancellation?

Submit a written request to your servicer, confirm good payment history, certify no subordinate liens, and provide an appraisal if required. Most servicers respond within 30 days.

Does PMI automatically go away?

Yes — at 78% LTV based on your original amortization schedule, as long as your loan is current. You do not need to request it at 78%, but you should verify cancellation on your next statement.

Can I cancel PMI early if my home value went up?

Possibly. Some servicers allow cancellation when current appraised value brings your LTV to 80% or below, even if you have not paid down to 80% of original value. Expect to pay $300 to $500 for an appraisal.

How long does PMI cancellation take?

After you submit a complete request, servicers typically process cancellation within 30 days. PMI stops on the first day of the month following approval.

Ready to compare mortgage options? Get a free quote through LendingTree to see rates with and without PMI.