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Guide

How to Remove PMI From Your Mortgage

CFPB Homeowners Protection Act rules for canceling PMI at 80 percent original value and automatic termination at 78 percent. Education, not a servicer request.

Published: 2026-09-14

Key takeaways

  • The CFPB says PMI is typically required on a conventional loan with less than 20 percent down. It protects the lender, not the borrower, if payments stop.
  • You may request cancellation in writing when the principal balance reaches 80 percent of original value, or sooner if extra payments get you there. Original value is generally the lesser of purchase price or purchase appraisal.
  • If you do not request cancellation, servicers generally must automatically terminate PMI when the scheduled balance reaches 78 percent of original value and you are current.
  • Servicers must also drop PMI the month after the midpoint of the original amortization schedule if you are current, even if the balance has not yet reached 78 percent. FHA MIP and VA funding-fee rules are different.

Published: 2026-09-14

Private mortgage insurance is a monthly or upfront charge that helps a conventional lender accept a smaller down payment. Removing it, when the law allows, lowers the housing payment. It does not change the note rate by itself.

The CFPB restated the federal rules on August 28, 2026. Those rules apply to many single-family principal-residence loans that closed on or after July 29, 1999. FHA and VA insurance use different statutes. This page is education, not a cancellation request.

What is PMI, and who does it protect?

The CFPB says PMI is insurance you might have to buy on a conventional loan with a down payment under 20 percent of the purchase price. The same idea usually applies to a conventional refinance when equity is under 20 percent of value.

PMI "protects the lender, not you, if you stop making payments on your loan." If you fall behind, you can still lose the home. The premium is often added to the monthly payment and shown on page 1 of the Loan Estimate under Projected Payments.

Estimate a planning payment in the PMI calculator. The tool uses a simple annual rate you enter. Actual PMI pricing varies by credit, loan-to-value, occupancy, and product. For tax treatment assumptions, see the PMI tax explainer.

When can you ask the servicer to cancel PMI?

The CFPB says you have the right to ask when the principal balance is scheduled to fall to 80 percent of the home's original value. That first request date should appear on the PMI disclosure you received at closing. Extra principal can move the request date earlier once the actual balance hits 80 percent.

"Original value" generally means the lesser of the contract sales price or the appraised value at purchase. If you refinanced, original value is the appraised value at that refinance. Scheduled 80 percent of an old purchase price is not the same as 80 percent of today's market value.

The servicer must grant a qualifying written request when you are current, have a good payment history, can certify there are no junior liens, and can show the property has not fallen below original value. An appraisal the holder requires is a common form of that evidence. A decline in value can block on-schedule cancellation.

When does PMI end automatically?

Even if you never write the letter, the CFPB says the servicer generally must terminate PMI on the date the principal balance is scheduled to reach 78 percent of original value, if you are current. If you are behind, termination waits until shortly after you catch up.

There is a second automatic date. The servicer must end PMI the month after you reach the midpoint of the original amortization schedule, even if the balance is still above 78 percent. On a 30-year loan that midpoint is 15 years. The CFPB says this path shows up more often on interest-only, forbearance, or balloon structures.

Fannie Mae and Freddie Mac may allow earlier cancellation under investor rules. The CFPB says those investor rules cannot be less favorable than the federal floor.

What is not the same as canceling conventional PMI?

FHA mortgage insurance and VA funding fees follow different handbooks. The CFPB tells you to ask the servicer about those programs rather than apply the 80 and 78 percent tests. Lender-paid mortgage insurance also uses different rules because you are not paying a separate borrower-paid premium.

A refinance can drop PMI if the new loan-to-value clears the new lender's threshold. That is a new loan with new costs. It is not the same as a cancellation letter on the current loan. See the refinance guide before you treat a refinance as the only path.

Rate note: canceling PMI changes the monthly insurance line. It is not a rate lock and not a guaranteed APR. Servicers apply the statute and the note. This site cannot cancel coverage.

Disclaimer: this guide is for general education. HomeMortgageOnline is not a lender, broker, or loan originator. It does not take applications, lock rates, or give financial advice. Real offers vary by credit, down payment, loan type, points, fees, and market conditions.

Sources

  1. Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan? (last reviewed August 28, 2026) - https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/
  2. Consumer Financial Protection Bureau, What is private mortgage insurance? - https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/
  3. Consumer Financial Protection Bureau, What is mortgage insurance and how does it work? - https://www.consumerfinance.gov/ask-cfpb/what-is-mortgage-insurance-and-how-does-it-work-en-1953/
  4. Fannie Mae, Private mortgage insurance overview - https://yourhome.fanniemae.com/buy/private-mortgage-insurance

Frequently asked questions

When can I remove PMI from my mortgage?

The CFPB says you may request cancellation in writing at 80 percent of original value if you are current, have a good payment history, have no junior liens, and the property has not declined. Automatic termination is generally scheduled at 78 percent if you are current. FHA and VA rules differ.

What does original value mean for PMI cancellation?

The CFPB says original value is generally the lesser of the purchase price or the purchase appraisal. After a refinance, it is the appraised value at that refinance. Today's market value is a different number. A decline below original value can block on-schedule cancellation.

Does PMI drop automatically at 78 percent?

In general, yes, on the scheduled date if you are current on a covered conventional loan. If you are delinquent, the CFPB says termination waits until shortly after you become current. You can also request cancellation earlier at 80 percent when you meet the other tests.

Is FHA mortgage insurance removed the same way as PMI?

No. The CFPB says FHA and VA insurance have different requirements and tells you to ask your servicer. Conventional PMI cancellation under the Homeowners Protection Act does not automatically apply to FHA MIP. Compare program rules before you assume the 80 percent test.

Does canceling PMI lower my interest rate?

Not by itself. PMI is a separate insurance charge. Removing it lowers the monthly insurance line if you were paying a monthly premium. The note rate stays the same unless you refinance or modify. Nothing here is a rate lock or a guaranteed APR.