When Can PMI Be Removed?

On many conventional mortgages, PMI does not last for the entire loan. Federal law sets a framework for when PMI on certain loans may end. Your servicer applies the rules to your specific loan — always confirm in writing before you stop budgeting for PMI.

Borrower-requested cancellation (around 80%)

On qualifying conventional loans, you may be able to ask your servicer to cancel PMI when the principal balance reaches 80% of the home's original value (the value used when the loan closed, not necessarily today's market price). The loan generally must be current, and you may need to show a history of on-time payments. The Consumer Financial Protection Bureau describes this as a borrower request, not an automatic switch.

Automatic termination (around 78%)

On many qualifying conventional loans, PMI must be terminated automatically when the scheduled principal balance reaches 78% of original value, if the loan is current and other requirements are met. This is based on the amortization schedule — not because you made a lump-sum payment ahead of schedule, unless that payment brought you below the threshold.

Appraised value and faster equity

If your home's market value rose, you might reach 80% LTV sooner than the original amortization schedule suggests. Some borrowers request cancellation based on a new appraisal. Servicers are not required to approve every request, and fees may apply. This is separate from the original-value rules above.

Loans that work differently

FHA mortgage insurance (MIP) has its own duration rules and is not PMI. VA loans use a funding fee instead of PMI. Lender-paid PMI (LPMI) bundles the cost into the rate and follows different cancellation rules. See PMI vs mortgage insurance for a comparison.

The PMI calculator shows how much principal you would need to pay down to reach 80% LTV from your inputs. It does not model automatic cancellation inside an amortization schedule — see methodology for that limitation.

Common misunderstanding

Reaching 20% equity based on appreciation alone does not always remove PMI the next month. Timing depends on loan type, whether you request cancellation, and servicer requirements. A 20% down payment at purchase avoids PMI on many conventional loans from the start.