1. Confirm you have a conventional loan, not FHA. The steps in this guide apply to conventional loans with borrower-paid PMI. FHA loans have mortgage insurance premiums (MIP) that follow different rules — most FHA loans require MIP for the life of the loan if you put less than 10% down. If you have an FHA loan, your path to removing mortgage insurance is typically refinancing to a conventional loan once you have 20% equity. Check your loan documents or call your lender to confirm your loan type before proceeding.
  2. Find your original purchase price and current loan balance. Gather your original mortgage note (or check your lender's online portal) for the original appraised or purchase price — whichever was lower. This is the benchmark figure used to calculate your loan-to-value (LTV) ratio for PMI cancellation purposes. Your current loan balance appears on your monthly statement. LTV = Current Balance ÷ Original Value. Example: $225,000 balance ÷ $300,000 original value = 75% LTV.
  3. Request PMI cancellation at 80% LTV (by payment history). Federal law under the Homeowners Protection Act (HPA) gives you the right to request PMI cancellation in writing once your loan balance reaches 80% of the original purchase price or appraised value at origination. You do not need to wait for your lender to act — submit a written request to your loan servicer. Requirements typically include: a good payment history with no 30-day late payments in the past 12 months, no 60-day late payments in the past 24 months, and written certification that your home value has not declined.
  4. Know the automatic cancellation threshold at 78%. Even if you never request cancellation, your lender is legally required to automatically cancel PMI once your loan balance drops to 78% of the original purchase price based on your amortization schedule — provided your payments are current. This happens automatically without any action from you. On a standard 30-year loan with 5% down, this typically occurs around year 10–12. Mark your calendar for when your scheduled balance will hit 78% so you can verify the cancellation happened.
  5. Order a new appraisal if your home has appreciated. If home values in your area have increased significantly since you purchased, you may be able to remove PMI sooner by demonstrating that your current loan balance is already at or below 80% of the new appraised value. Request a formal appraisal through your lender — typically costing $400–$700. Most lenders require: at least 2 years of ownership before allowing appreciation-based cancellation; at least 1 year of ownership if your LTV would be 75% or below based on the new appraisal. Example: You bought at $300,000, still owe $270,000, but the home is now appraised at $380,000. Your new LTV is 71% — well below 80%, and cancellation should be approved.
  6. Submit a formal PMI cancellation request in writing. Once you meet the criteria, write a formal letter to your mortgage servicer requesting PMI cancellation. Include: your loan account number, your current loan balance, a statement that you believe you have reached 80% LTV based on original value or current appraisal, and your contact information. Send via certified mail or through the servicer's secure message portal, and keep a copy. The lender typically has 30 days to respond.
  7. Make extra principal payments to accelerate the timeline if needed. If your LTV is at 83–85% and you want to remove PMI sooner, consider making extra principal payments to get below 80% faster. Even an extra $100–$300 per month applied to principal can shorten the timeline by years. Use an amortization calculator to model how many months of extra payments it would take to reach your target LTV.
  8. Consider refinancing if rates are favorable. If your home has appreciated significantly but your lender is slow to approve cancellation, or if you have an FHA loan with lifelong MIP, refinancing to a new conventional loan with 20%+ equity eliminates mortgage insurance entirely. Compare the refinancing cost (closing costs of 2–3% of the new loan) against the monthly PMI savings to determine your break-even timeline. If you plan to stay in the home beyond the break-even point, refinancing may be the fastest and most economical path.

Frequently Asked Questions

When can I ask my lender to remove PMI?

You can request PMI cancellation in writing once your loan balance reaches 80% of your home's original purchase price or appraised value. You must have a good payment history and, in some cases, confirm the property value has not declined.

Will PMI be removed automatically?

Yes. Under federal law, lenders must automatically cancel PMI when your loan balance reaches 78% of the original purchase price based on your scheduled amortization — as long as your payments are current. You do not need to request it for this automatic threshold.

Can home appreciation help me remove PMI sooner?

Yes. If your home's value has increased, you can order a new appraisal through your lender. If the new appraisal shows your current loan balance is 80% or less of the appraised value, and you have owned the home at least 2 years, you can request PMI cancellation based on the new value.