How to note your PMI removal date and plan for it
For PMI removal on most conventional loans, you can ask to cancel once your balance reaches 80% of the home's original value, and PMI generally ends on its own at 78%. Find both dates on your PMI disclosure, put them on your calendar, and keep a clean payment record so a written request succeeds.
How PMI removal works under federal law
Private mortgage insurance protects your lender, and you pay for it. The federal Homeowners Protection Act gives you three ways out: you can ask at 80%, it ends automatically at 78%, and it must end by the midpoint of the loan. These rules cover mortgages on a single-family main home closed on or after July 29, 1999.
The percentages use the original value, not today's market price. That generally means the lower of your contract price or the appraisal when you bought. If you refinanced, it is the appraised value at the refinance.
When to plan for PMI removal
Do the planning this week, while your closing papers are handy. The first date you can ask should appear on your PMI disclosure form, and your servicer must also send a yearly notice of your cancellation rights. Extra principal payments can move your 80% point earlier, so check your balance each time you pay down the loan. Then send your request as soon as you qualify. Waiting for 78% means paying premiums you could have stopped sooner.
When does PMI go away? Balances and dates
Here's how the milestones work on a sample home bought for $400,000 that appraised for $410,000. The original value is $400,000, the lower figure.
| Milestone | Balance | What happens |
|---|---|---|
| 80% of original value | $320,000 | You can ask in writing to cancel |
| 78% of original value | $312,000 | PMI generally ends on the scheduled date if you're current |
| Midpoint of the loan | Year 15 of a 30-year loan | PMI must end the next month if you're current, even above 78% |
Good payment history has a specific meaning. You can't have a payment 30 or more days late in the past 12 months, or one 60 or more days late in the 12 months before that. Your servicer must return any unearned premiums within 45 days after PMI ends, so watch for that refund.
How to remove PMI step by step
- Find your PMI disclosure
Look in your closing packet for the form showing the date your balance should reach 80%. If you can't find it, ask your servicer.
- Work out your target balances
Multiply the original value by 0.80 and 0.78. Write both balances and both dates in your calendar.
- Check your loan type
Confirm your insurance is borrower-paid private mortgage insurance. FHA, VA and lender-paid coverage work differently.
- Protect your payment record
Set up autopay or reminders so no payment reaches 30 days late, especially in the two years before your date.
- Consider extra principal
If it fits your budget, mark extra payments as principal, then ask your servicer for an updated date.
- Ask what evidence is needed
A few months early, ask how the servicer wants proof of value and whether an appraisal is required.
- Send a written request
Include your loan number and a statement that there are no junior liens. Keep a copy and proof of delivery.
- Confirm it stopped
Check your next statement for a lower payment, and look for any refund of unearned premiums.
Rules to cancel PMI depend on loan type, not state
This is a federal law, so the core rules work the same in every state. Your loan type matters far more than your address. FHA and VA loans have different requirements, and so do loans where the lender pays the mortgage insurance. Loans a lender classes as high risk can have other dates, which your disclosure should state. If you have one of these, call your servicer and ask exactly what ends your premium.
What can block PMI cancellation
- A second loan. You must certify there are no junior liens, so a second mortgage or similar lien can block the request.
- A drop in value. You may need to show the home is worth at least its original value. Ask what evidence your servicer accepts, and what it costs, before you order anything.
- Using today's price. A rise in home value doesn't change the federal 80% math. Some lenders allow earlier removal under their own standards, so it's fair to ask.
- Being behind. If you aren't current at 78%, PMI ends only after you catch up.
- Payments you shouldn't owe. No PMI can be required more than 30 days after you meet the cancellation requirements, so check your next statements.
What homeowners say about getting rid of PMI
Ask for removal in writing (owners suggest certified mail) once you reach 80% of the original value. Expect the lender to require a clean payment history, often 12 months, and sometimes an appraisal. (Personal Finance Stack Exchange)
PMI removal questions
Can I remove PMI if my home's value went up?
Federal rules use the original value, so a rising market doesn't trigger cancellation by itself. Lenders and servicers may allow earlier removal under their own standards, so ask yours what it requires.
Does PMI go away on its own?
Generally yes. It ends on the date your balance is scheduled to reach 78% of original value if you're current, and by the loan's midpoint at the latest. FHA and VA loans follow different rules.
Do I need an appraisal to cancel PMI?
You may. Your servicer can require evidence that the home's value hasn't fallen below its original value, and an appraisal is one example. Ask before ordering one so you get the type it accepts.
Sources: CFPB, fdic.gov, ncua.gov
General guidance for U.S. homes, not professional advice. For gas, electrical and structural work, call a licensed pro.