Private mortgage insurance (PMI) adds to your monthly mortgage payment, but it doesn’t have to last forever. Most homeowners can remove PMI once their mortgage balance reaches 80% of their home’s original value, and lenders must automatically cancel it at 78% loan-to-value (LTV) if the loan is current.
In some situations, homeowners may be able to remove PMI even sooner—especially if they’ve built equity faster through home price appreciation, extra mortgage payments, or refinancing into a new loan.
Understanding when PMI can be removed and how the process works can help you lower your monthly payment and reduce the total cost of your mortgage.
How to request PMI removal from your mortgage
Private mortgage insurance isn’t permanent. Once you build enough equity in your home, you may be able to remove PMI and reduce your monthly mortgage payment.
For most conventional loans, PMI can be eliminated once your loan-to-value (LTV) ratio reaches certain thresholds, though the exact process depends on your loan terms and your lender’s requirements.
Homeowners typically get rid of PMI in one of the following ways.
1. Request PMI cancellation at 80% loan-to-value (LTV)
You can formally ask your mortgage servicer to remove PMI once your loan balance reaches 80% of the home’s original value, assuming you meet payment history and eligibility requirements.
Most lenders require:
- A good payment history
- The loan to be current
- No recent late payments (typically within the last 12 months)
- No additional liens, such as a second mortgage or HELOC
- Proof that the property value has not declined
Submitting a written request to your servicer usually starts the PMI cancellation process.
2. Automatic PMI termination at 78% LTV
If you don’t request PMI removal earlier, federal law requires lenders to automatically cancel PMI once your balance reaches 78% of the home’s original value, based on the loan’s amortization schedule, as long as your loan is current.