How to Get Rid of PMI: 4 Ways to Stop Paying Mortgage Insurance

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⏱ 6 min readUpdated October 12, 2026By Sonu Pal, Founder

Private mortgage insurance (PMI) protects your lender, not you. The good news: on a conventional loan, it doesn’t last forever. Here are the 4 ways to remove it, from slowest to fastest.

1
Wait for 78%Automatic
2
Ask at 80%Written request
3
Pay extraGet to 80% sooner
4
New appraisalIf your home gained value
  • PMI is usually required on conventional loans with less than 20% down.
  • It often costs $30 to $70 a month per $100,000 borrowed (Freddie Mac).
  • Federal law (the Homeowners Protection Act) sets when it must end.
Illustration of a house with a protective shield being lifted off, representing removing mortgage insurance

Our Example Loan

$400,000Home price
$360,000Loan: 10% down, 30 years at 6.5%
$150/moExample PMI (0.5% a year)
  • Monthly principal and interest: $2,275.44.
  • 80% of original value = a $320,000 balance.
  • 78% of original value = a $312,000 balance.

Way 1: Let It End Automatically at 78%

Way 1Automatic termination
Effort: NoneSpeed: SlowestIn our example: Month 109 (about 9 years)
  • Your servicer must cancel PMI on the date your balance is scheduled to reach 78% of the original value.
  • You must be current on payments.
  • Backstop: PMI must end the month after your loan’s midpoint (year 15 on a 30-year loan), even if you haven’t hit 78%.
  • “Original value” = the lower of the purchase price or the appraised value when you bought.

Way 2: Request Cancellation at 80%

Way 2Borrower-requested cancellation
Effort: One letterSpeed: About 14 months soonerIn our example: Month 95 (about 8 years)
  • You can ask to cancel once your balance reaches 80% of original value.
  • Request it in writing.
  • You need a good payment history and no second mortgage or home equity loan.
  • Your lender may ask for proof, like an appraisal, that your home hasn’t lost value.
  • Find your original value and current balance on your statement
  • Confirm you’re current and have no late payments
  • Confirm there’s no second mortgage or HELOC on the home
  • Send a written cancellation request to your servicer
  • Ask whether they need an appraisal, and who orders it

Way 3: Pay Extra to Reach 80% Sooner

Way 3Extra principal payments
Effort: Budget for itSpeed: FastIn our example: Month 64 with +$200/mo
  • Every extra dollar goes to principal and moves your balance toward 80%.
  • CFPB: you can request cancellation early if extra payments bring your balance to 80%.
  • Tell your servicer to apply extra money to principal.
$6,750PMI saved

Paying $200 extra a month and requesting cancellation at 80% ends PMI 45 months earlier than waiting for automatic removal. That’s 45 × $150 in PMI you never pay, plus less interest on the loan.

Way 4: Use Your Home’s Current Value

Home appraiser measuring the outside of a house with a clipboard
  • If your home has gained value, a new appraisal can lower your loan-to-value (LTV) ratio.
  • This isn’t set by federal law. It depends on who owns your loan.
  • Fannie Mae loans (one-unit primary home or second home): LTV of 75% or less after 2–5 years, or 80% or less after 5+ years, based on current value.
  • You also need a clean payment history: no 30-day late payments in the last 12 months and no 60-day lates in the last 24.

Example: after 5 years, our balance is about $337,000. If a new appraisal shows $421,250 or more, the LTV is 80% or less, and a Fannie Mae loan could qualify.

Ask your servicer first. You usually pay for the appraisal (often several hundred dollars), and it only helps if the value comes in high enough.

Have an FHA Loan? Different Rules

Conventional PMI

  • EndsAt 78% automatically, or 80% on request
  • Early removalExtra payments or new appraisal
  • Rule sourceHomeowners Protection Act
vs

FHA mortgage insurance (MIP)

  • EndsAfter 11 years if you put 10%+ down
  • If under 10% downFor the loan term (up to 30 years)
  • Rule sourceHUD (case numbers from June 3, 2013)
  • FHA MIP doesn’t drop off at 78% like PMI does.
  • Many FHA borrowers remove it by refinancing into a conventional loan once they have enough equity.
  • Refinancing has closing costs, so compare the total cost first.

Frequently Asked Questions

Does PMI go away on its own?

Yes, on most conventional loans. It must end when your balance is scheduled to hit 78% of the original value, or at the loan’s midpoint, as long as you’re current on payments.

Can I remove PMI if my home value went up?

Possibly. Many lenders allow it with a new appraisal, but the rules depend on who owns your loan. Ask your servicer.

Is PMI tax-deductible?

Tax rules on mortgage insurance premiums have changed over the years. Check current IRS guidance or ask a tax professional for your situation.

Will refinancing get rid of PMI?

It can, if the new loan is 80% or less of your home’s current value. Weigh the closing costs and the new rate first.

When can you drop PMI?

Enter your home price, down payment, and rate. See your PMI cost and the exact month it can end.

Open the PMI calculator →
50% LTV78–80%100%

Our example starts at 90% LTV. PMI can go once you reach 80% (yellow), and must go at 78% (green).

Sources

This article is for educational purposes only and is not financial, tax, or legal advice. Rates and rules change, so confirm with your bank, lender, or a qualified professional before you decide.