How to Remove PMI From Your Mortgage
Last updated September 2026
Quick answer
PMI comes off one of two ways: it automatically terminates at 78% LTV by law if you're current on payments, or you can request cancellation at 80% LTV in writing once you get there. On our $360,000 example loan, doing nothing gets you to 78% in about 8 years 10 months. Adding just $200/month extra toward principal pulls that forward to about 6 years 1 month — nearly 3 years sooner, and roughly $5,350 less in total PMI paid.
The two removal paths
| Automatic termination | Requested cancellation | |
|---|---|---|
| Threshold | 78% LTV (original value/schedule) | 80% LTV |
| What you do | Nothing — it's required by law | Submit a written request to your servicer |
| Requirements | Current on payments | Current on payments, good payment history, no other liens |
| If based on appreciation | Not applicable | Usually requires a new appraisal ($500–$600, paid by you) |
How much extra payments actually help
Same $360,000 loan, same 6.25% rate, with an extra $200/month toward principal from day one:
| No extra payments | +$200/month extra | Time saved | |
|---|---|---|---|
| Reach 80% LTV (request eligible) | ~7 yrs 8 mos | ~5 yrs 3 mos | 2 yrs 5 mos |
| Reach 78% LTV (automatic) | ~8 yrs 10 mos | ~6 yrs 1 mo | 2 yrs 9 mos |
| Total PMI paid by that point | ~$17,400 | ~$12,045 | ~$5,355 saved |
The extra $200/month isn't free money — it's the same trade-off covered in How to Pay Off Your Mortgage Early. But if removing PMI faster is part of your goal, this is exactly how much it's worth in practice.
The faster path: appraisal-based early request
If your home's value has risen, you may not need to wait for scheduled paydown at all. On our $400,000 purchase with a $360,000 loan, here's what appreciation alone does to your LTV, with zero extra payments:
Home value rises to $450,000 (12.5% appreciation)
$360,000 loan ÷ $450,000 new value = 80% LTV
→ Eligible to request cancellation immediately (appraisal required),
instead of waiting 7 years 8 months for scheduled paydown alone.Most servicers require you to have owned the home for a minimum period (often 2 years) before accepting a value-based request, and you'll pay for the appraisal yourself — but in a market that's appreciated meaningfully, this can beat waiting by years.
How to actually submit the request
- Confirm your current balance and your home's original value (or get a new appraisal if requesting based on appreciation).
- Check you're current on payments with no history of late payments in the past 12 months (common servicer requirement).
- Confirm there are no second liens (like a HELOC) that would push your combined LTV back above 80%.
- Submit a written cancellation request to your servicer — most have a specific form; a signed letter works if they don't.
- If your servicer denies a valid request or fails to automatically terminate PMI at 78% while you're current, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
If you have FHA MIP instead of PMI
These removal paths are specific to conventional PMI. FHA's mortgage insurance (MIP) follows different rules entirely — if you put down less than 10%, it doesn't automatically cancel at any LTV, and the only way out early is generally refinancing into a conventional loan. See FHA vs. Conventional Loan for the comparison.
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Frequently asked questions
How do I request PMI cancellation?
Submit a written request to your servicer once your balance reaches 80% of your home's value. You'll generally need to be current on payments, have a clean recent payment history, and have no additional liens on the property.
Can I request cancellation early if my home's value has increased?
Often, yes — but it typically requires a new appraisal, paid by you, to confirm the current value, and many servicers require you to have owned the home at least two years before accepting a value-based request.
What if my servicer won't cancel PMI even though I'm eligible?
By law, PMI must automatically terminate at 78% LTV (based on original value and your amortization schedule) if you're current on payments. If your servicer doesn't comply, you can file a complaint with the Consumer Financial Protection Bureau.
Does paying extra toward principal actually help remove PMI faster?
Yes, significantly. As shown above, $200/month extra can pull the cancellation date forward by roughly 2–3 years on a typical loan.
What if I have FHA MIP instead of conventional PMI?
FHA MIP follows different rules. If you put down less than 10%, it doesn't automatically cancel at any point — refinancing into a conventional loan is generally the only way to remove it early.
Related guides
What Is PMI (Private Mortgage Insurance)?
What PMI costs by down payment size, how it's calculated, and the two ways it legally comes off your loan.
Read moreFHA vs. Conventional Loan: Which Is Right for You?
Five ways to finance the same home compared — and why your credit score, not the headline rate, usually decides which loan wins.
Read more20% Down Payment vs. PMI: Which Costs You Less?
Buying now with PMI versus waiting to save 20% — and why appreciation can move the target faster than you save.
Read moreWhen Should You Refinance Your Mortgage?
The break-even calculation, plus the reset-the-clock cost that can make a lower rate more expensive overall.
Read moreFigures on this page are generated from the same amortization engine that powers the MortMetrix dashboard, using the example loan stated in each table. They are estimates based on a fixed-rate loan at a constant rate and are not your actual loan terms. This is educational information, not financial advice.