How do you get rid of PMI?

PMI (private mortgage insurance) cancels automatically once your loan balance reaches 78% of the original home value â but you can request cancellation earlier at 80% LTV, or eliminate it faster by making extra principal payments, refinancing, or getting a new appraisal if your home has appreciated.

PMI protects the lender â not you â if you default. It's required on conventional loans when your down payment is less than 20%, and it adds $50-$200 or more to your monthly payment depending on loan size and credit score. The good news is that PMI is not permanent: federal law gives you specific rights to cancel it, and there are several ways to accelerate the process.

Your federal rights under the Homeowners Protection Act

The Homeowners Protection Act (HPA), enforced by the CFPB, establishes three cancellation milestones for conventional loans. First, you can request cancellation in writing when your principal balance reaches 80% of the original purchase price or appraised value at origination â whichever is lower. Second, your lender must automatically cancel PMI when the balance reaches 78% of that original value â even if you don't ask. Third, PMI must be terminated at the midpoint of your loan's amortization schedule, even if you haven't reached 80% LTV, as long as you're current on payments. These rights apply to single-family primary residences. CFPB's PMI guide explains the exact process.

Ways to reach 80% LTV faster

Make extra principal payments: even small additional amounts applied to principal each month shorten your amortization and advance the 80% LTV threshold.
Request a new appraisal: if your home's value has increased significantly since purchase, a new appraisal may show your current balance is already below 80% of the current market value. Note: lenders typically require you to have owned the home for at least two years, and some require five years before considering appreciation-based cancellation.
Refinance: if rates are favorable, refinancing resets the loan with a new appraisal. If the new appraisal supports 20%+ equity, PMI doesn't attach to the new loan.
Lump-sum payment: a one-time principal payment can push your balance below the 80% threshold if you're close.

FHA loans: a different set of rules

FHA loans have a different insurance structure called the mortgage insurance premium (MIP), and the cancellation rules are stricter. For FHA loans originated after June 2013 with a down payment below 10%, MIP lasts the life of the loan â it does not cancel at 78% LTV. The most common way to eliminate MIP from an FHA loan is to refinance into a conventional loan once you have sufficient equity. HUD's FHA mortgage insurance information provides full details on MIP terms by loan vintage.

What federal law says about PMI cancellation

The Homeowners Protection Act requires lenders to automatically cancel PMI on conventional loans when the balance reaches 78% of the original property value and the borrower is current on payments. — CFPB
Borrowers may request PMI cancellation in writing at 80% LTV; the lender may require a new appraisal and a good payment history with no junior liens. — CFPB
FHA mortgage insurance premiums (MIP) for loans originated after June 2013 with less than 10% down do not cancel at 78% LTV â they persist for the life of the loan. — HUD

Key takeaways

Federal law (the Homeowners Protection Act) requires automatic PMI cancellation when your balance hits 78% of the original home value.
You can request cancellation at 80% LTV by writing to your lender â you don't have to wait for automatic termination.
Extra principal payments, a new appraisal (if your home has appreciated), or refinancing can all accelerate PMI removal.
FHA mortgage insurance (MIP) works differently: for loans originated after June 2013 with under 10% down, MIP lasts the life of the loan.
Refinancing into a conventional loan is the primary exit ramp from FHA MIP once you have 20%+ equity.