How do you remove PMI? On a conventional loan, you can ask your servicer in writing to cancel private mortgage insurance once your balance reaches 80% of your home's original value, and the law requires it to end automatically when your balance is scheduled to hit 78%, as long as you're current. If your home has gained value, you may be able to drop it sooner with a new valuation.
FHA loans work differently. FHA charges mortgage insurance premium (MIP), not PMI, and on many loans it lasts 11 years or the life of the loan, depending on your original down payment. In those cases, a refinance is the usual exit.
Data note: Rules come from the Consumer Financial Protection Bureau's explanation of the Homeowners Protection Act, the Fannie Mae Servicing Guide (B-8.1-04) and HUD Mortgagee Letters 2013-04 and 2023-05. Loan-level rules vary by investor; your servicer has the final word.
Three Ways Conventional PMI Ends
1. You Request Cancellation at 80%
Per the CFPB, you can ask to cancel PMI when your principal balance is scheduled to reach 80% of original value, or sooner if extra payments get you there. You'll generally need:
- A written request
- A good payment history and current payments
- No junior liens, such as a second mortgage or HELOC
- Possibly evidence the home hasn't lost value, such as an appraisal
"Original value" generally means the lower of the purchase price or the appraised value when you bought. If you refinanced, it's typically the appraisal from the refinance.
2. Automatic Termination at 78%
Your servicer must automatically end PMI when your balance is scheduled to reach 78% of original value, as long as you're current. Note the word scheduled: extra principal payments don't move this date. To benefit from prepaying, request cancellation at 80%.
3. Final Termination at the Midpoint
Even if you haven't reached 78%, PMI must end at the midpoint of your loan's amortization schedule, if you're current. On a 30-year loan, that's after 15 years.
What Happens to Your Payment
For Fannie Mae loans, the Servicing Guide requires servicers to:
- Stop collecting premiums within 30 days after the request or the date the criteria are met
- Notify you within 30 days that MI has ended
- Forward any unearned premium refund no later than 45 days after termination
Removing PMI Based on Your Home's Current Value
If your home has appreciated, you may not need to wait for the amortization schedule. For one-unit principal residences and second homes owned by Fannie Mae, the Servicing Guide sets these thresholds:
- Loan two to five years old: loan-to-value of 75% or less
- Loan more than five years old: loan-to-value of 80% or less
- Value-adding improvements (kitchen or bath renovations, added square footage): the two-year seasoning can be waived with an LTV of 80% or less
Payment Record Requirements
- Current when you request
- No payment 30+ days late in the last 12 months
- No payment 60+ days late in the last 24 months
How to Request It
Fannie Mae's guide says servicers must not solicit current-value cancellations, so you must ask. Valuations are ordered through Fannie Mae's process and must be based on an interior and exterior inspection. Ask your servicer who owns your loan and what it charges for the valuation; other investors set their own rules.
FHA Loans: MIP Is a Different Animal
How Long FHA MIP Lasts
Under HUD Mortgagee Letter 2013-04, for most FHA loans with case numbers assigned on or after June 3, 2013:
- Original LTV 90% or less (about 10% or more down): annual MIP for 11 years
- Original LTV above 90%: annual MIP for the mortgage term
What It Costs Now
HUD Mortgagee Letter 2023-05 cut annual MIP, effective March 20, 2023, for loans with terms over 15 years and base loan amounts at or below $726,200 to:
- 50 basis points with LTV of 95% or less
- 55 basis points with LTV above 95%
The Usual Exit
If your MIP runs for the life of the loan, refinancing into a conventional mortgage once you have enough equity is the common path. Weigh closing costs and today's rate against your current one before you move. Our guide to HELOCs vs. cash-out refinancing covers related tradeoffs.
“PMI is one of the first things I bring up when past clients ask what their home is worth. Many owners don't realize they have to ask to remove it. A call to the servicer and a valuation can be one of the easiest ways to lower a monthly payment.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Planning to Buy? Think About PMI Up Front
- First-time buyers can compare down payment help in our Arizona first-time buyer programs guide
- Higher price points may involve jumbo financing; see our 2026 jumbo loan limit guide
- Ask your lender for the PMI disclosure, which shows the first date you can request cancellation
FAQ: Removing PMI
Does PMI go away after 20 percent equity?
You can request cancellation at 80%; it ends automatically at 78% (scheduled).
Can I remove PMI if my home value increased?
Often. Fannie Mae requires LTV of 75% or less (2-5 years) or 80% or less (5+ years).
How do I remove PMI without refinancing?
Ask your servicer in writing and meet the payment and lien requirements.
How do I get rid of MIP on an FHA loan?
It may end after 11 years; otherwise, refinance to a conventional loan.
Wondering What Your Home Is Worth Now?
A current value estimate is the first step toward a PMI review, a refinance or a move. I'll put one together for you, no strings attached.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate
Let's Talk · Call or text 602-885-7752
Sources: CFPB: When can I remove PMI from my loan? · Fannie Mae Servicing Guide: B-8.1-04, Terminating Conventional Mortgage Insurance · HUD: Mortgagee Letter 2013-04 · HUD: Mortgagee Letter 2023-05
Disclaimer: General information, not financial or legal advice. Mortgage insurance rules depend on your loan type, investor and servicer. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch