How to Remove PMI from Your Mortgage
Key Takeaways
- Homeowners can usually request PMI removal once they reach 20% equity in their home.
- PMI automatically ends on many conventional loans when the balance reaches 78% of the home’s original value (22% equity).
- Lenders typically require a good payment history and no additional liens before removing PMI.
- Refinancing or increasing your home’s value may help you eliminate PMI sooner.
Homeowners who pay mortgage insurance often want to know how to remove it from their monthly payments. The process depends on your loan type, since different mortgages require different forms of insurance. For conventional loans, private mortgage insurance (PMI) can typically be removed by building enough home equity, requesting early cancellation, or refinancing. This guide explains the requirements, elimination methods, and common questions related to removing PMI.
PMI Removal Requirements
Homeowners must meet certain requirements before PMI can be removed from a conventional mortgage. While exact guidelines vary, most lenders look for enough home equity, a strong payment history, and proof that there are no additional liens against the property.
- At least 20% equity: Most lenders allow you to request PMI cancellation once you reach 20% equity in their home, meaning the loan-to-value (LTV) ratio falls to 80%. Under federal law, PMI is generally removed automatically when the loan balance reaches 78% of the home’s original value if the borrower is current on payments.
- Good payment history: Lenders usually require a solid recent payment history before approving PMI removal. In many cases, this means no payments over 30 days late within the past 12 months and no recent serious delinquencies.
- No second liens: You may need to certify that there are no second mortgages, HELOCs or other liens attached to the property. Additional liens can affect the home’s equity position and may delay PMI cancellation.
- Property value verification: Some lenders may require a home appraisal to confirm the property has not declined in value. This is more common when requesting early PMI removal based on the home increasing in value.
- Seasoning requirements: Certain lenders require you to wait a minimum amount of time before requesting PMI cancellation, especially if you’re relying on the home appreciating rather than paying down the loan balance.
If you have an FHA loan, the rules are different because FHA loans use MIP instead of PMI. Depending on your loan terms and down payment, removing FHA mortgage insurance may require refinancing into a conventional loan.
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Ways to Get Rid of PMI on Your Mortgage
If you think you’re a candidate for PMI removal, there are several options to consider.
Wait for Automatic PMI Removal
If you don’t ask your lender to remove PMI when your principal balance reaches 80% of the original home value, your lender is required to remove PMI from your mortgage either when the loan balance reaches 78% and home equity reaches 22% or when the loan is halfway through its term.
You’ll need to be current on your loan to be eligible for automatic PMI termination. How long you pay for PMI could range from 2 years to 11 years or longer, depending on how quickly you build equity.
Request Early PMI Cancellation
Once your home’s equity reaches 20%, you may be able to request PMI cancellation before automatic removal occurs. Here are the basic steps:
- Check eligibility: Before requesting PMI cancellation, confirm that you meet your lender’s requirements. Most lenders require sufficient equity, a strong payment history, and proof that there are no second liens on the property. If your home has significantly increased in value, you can ask if appreciation-based PMI removal is available.
- Gather required documentation: Prepare recent mortgage statements, proof of on-time payments and documentation for any major home improvements in case your lender asks. They may also require a new home appraisal to verify the current property value.
- Send a formal letter to your lender: Many mortgage servicers require borrowers to submit a written request for PMI cancellation including loan information, a request to remove PMI, and any supporting documentation the lender requires. After reviewing your request, the lender will let you know whether additional steps are needed.
Pay Down Your Mortgage Principal Faster
Another way to remove PMI sooner is to pay down your mortgage balance ahead of schedule. Making extra monthly principal payments or applying lump-sum payments toward the loan can help the principal balance reach 80% of your home's original purchase price. Even small additional payments over time may reduce your balance enough to qualify for PMI cancellation faster.
Get an Updated Appraisal
In a rising market, your home’s value may increase enough to help you qualify for PMI removal earlier. A lender may allow you to order a reappraisal to prove the property value has gone up since you purchased the home. This approach can be especially helpful after renovations or major home improvements. It’s important to note that appraisals typically come with a fee and approval is not guaranteed. You may also need a lower LTV to move forward with this method.
Refinance to a Loan Without PMI
Refinancing your mortgage may allow you to remove PMI if your new loan balance will be 80% or less of your home’s current value. This works well if your property value has increased or you’ve paid down enough principal to meet equity requirements. However, refinancing does not automatically guarantee PMI removal because lenders still evaluate your equity, credit profile, and loan eligibility.
Before refinancing, consider the total cost of the new loan, including closing costs and current interest rates and compare the long-term savings from removing PMI against the overall cost of refinancing.
How Long Does PMI Removal Take?
The PMI removal timeline can vary depending on your lender, loan type, and whether an appraisal is required, though the review process usually takes several weeks. Federal law establishes timelines for automatic PMI termination once borrowers reach the required LTV threshold.
What Can Delay PMI Removal?
Several factors can delay the PMI cancellation process, especially if the lender needs additional information before approving the request.
- Missed payments: Late mortgage payments can prevent homeowners from qualifying for PMI cancellation. Lenders generally require borrowers to be current on their mortgage and demonstrate a recent history of on-time payments.
- Insufficient equity: If the lender determines the borrower has not reached the required equity threshold, the request may be denied. This can happen if the home appraises for less than expected or if the loan balance remains too high.
- Incomplete request: Missing documents, unsigned forms, or incomplete lender requirements can slow the review process. Double-check all required information before submitting the cancellation request.
- Lender refusal: A lender may deny a PMI removal request if the borrower does not meet the required conditions. Common reasons include insufficient equity, late payments, declining property value, or outstanding second liens on the home.
Final Thoughts: Getting Rid of PMI
Removing PMI can help lower your monthly mortgage payment and reduce the overall cost of homeownership. Whether you wait for automatic cancellation or request early removal, understanding the requirements can help you plan the right strategy for your financial goals. If you’re exploring ways to reduce mortgage costs, we can help you review your options and determine what makes sense for you.
*Approval may be granted in five minutes but is ultimately subject to verification of income and employment, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing, or that require a waiting period prior to closing.
Gabriella is a digital communications specialist at Life Care Centers of America and is based in Chattanooga, Tennessee. She earned a BS in business administration and public relations from Southern Adventist University in May 2025, where she received the 2025 scholarly achievement award from the department of journalism and communication. Prior to her current role, she spent six months as a marketing writer intern at Freedom Mortgage and has continued contributing as a freelance writer.
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