How to Remove PMI From Your Mortgage: Rules and Steps

If you have a conventional loan, you can ask your servicer to cancel private mortgage insurance in writing once your balance reaches 80% of your home’s original value. It ends on its own at 78% if you are current on payments. FHA loans work differently: their mortgage insurance premium (MIP) usually can’t be canceled, and often the only way out is to refinance.

Below, we walk through the legal rules, the faster route based on your home’s current value, what it costs to prove it, and what to do if you have an FHA loan.

Comparespot

Compare Metro Detroit Mortgage Lenders

CompareSpot ranks local mortgage lenders using research and customer sentiment, with rankings tailored to Wayne, Oakland, and Macomb counties.

Compare local lenders

TL;DR

Conventional loans: you can request cancellation at 80% of the original value, and the servicer must end PMI automatically at 78% if you are current.
Appreciation can speed it up, but it is not a legal right. Some investors, including Fannie Mae, allow cancellation based on a new valuation, and you pay for it.
FHA MIP is a different product. With less than 10% down, it generally lasts the life of the loan. With 10% or more down, it lasts 11 years.
Track your own dates. Servicers sometimes miss them, so check your statement and your amortization schedule.

PMI and MIP are not the same thing
When you can cancel PMI on a conventional loan
Getting PMI removed sooner because your home gained value
Step by step: how to request PMI cancellation
If you have an FHA loan
Refinancing to drop PMI: when it makes sense
What to do when your servicer gets it wrong
Our perspective
Shopping for a loan or a refinance in Metro Detroit?
FAQ
Sources

PMI and MIP are not the same thing

People use “PMI” for any mortgage insurance, but the two products follow different rules, and that decides your options.

	Conventional PMI	FHA MIP
Who it protects	The lender, through a private insurer	The FHA insurance fund, per HUD
Can you request cancellation?	Yes, at 80% of original value, with conditions	Not based on equity
Automatic end	At 78% of original value, or at the midpoint of the loan term	After 11 years if LTV was 90% or less at origination; otherwise the full term
Can a new appraisal end it?	Sometimes, at the investor’s discretion	No
Main way out	Request, automatic termination, or refinance	Wait it out, or refinance into a conventional loan

The CFPB explains that FHA premiums last the full term when the original LTV was above 90%, and 11 years when it was 90% or less. HUD guidance adds that annual MIP supports the Mutual Mortgage Insurance Fund, which is why it doesn’t carry the cancellation rights conventional borrowers get. If you aren’t sure which loan you have, check your closing disclosure or your monthly statement.

When you can cancel PMI on a conventional loan

The Homeowners Protection Act sets three milestones. All of them are measured against your home’s original value, meaning the lower of the purchase price or the appraised value at closing. Today’s market value isn’t part of the calculation.

80% LTV: you can ask. Once your scheduled or actual balance reaches 80% of original value, you can submit a written request. The rule is in Section 3 of the federal regulation that implements the law.
78% LTV: the servicer must act. If you never ask, PMI ends automatically on the date your balance is scheduled to reach 78%, as long as you are current.
The midpoint: a backstop. Even if you haven’t reached 78%, the servicer must end PMI the first day of the month after the halfway point of your amortization schedule, such as year 15 of a 30-year loan, if you are current.

A worked example: you buy a home for $250,000 with 5% down, so your loan is $237,500. Eighty percent of the original value is $200,000. Once your balance is at or below that, you can request cancellation. At 78%, the number is $195,000. Extra principal payments get you to $200,000 sooner than the schedule alone.

What the servicer will check

To approve a borrower-initiated request, expect the servicer to require:

A written request. A phone call alone doesn’t start the legal clock. The CFPB’s examination procedures describe the written request as the way a borrower initiates cancellation.
A good payment history. Typically that means no payment 30 or more days late in the past year and none 60 or more days late in the past two years.
Current status on your payments.
Evidence of no junior liens, such as a second mortgage or HELOC, on the property.
Sometimes, proof that the property’s value has not fallen below the original value, which may need a new valuation you pay for.

The CFPB’s own summary of these rules is worth reading before you write your letter.

Getting PMI removed sooner because your home gained value

If prices in your neighborhood have climbed, you may not want to wait for the schedule. This route is real, but it’s discretionary: the HPA doesn’t give you a right to cancel based on a new appraisal. It depends on your loan’s investor and your servicer’s policy.

For loans owned by Fannie Mae, the servicer guidance in Lender Letter LL-2018-03 ties the allowed LTV to how old the loan is. In short, the LTV based on a current valuation must be 75% or less if the loan is between two and five years old, and 80% or less once it is older than five years. Check the letter for the exact conditions, including payment history and lien requirements.

You can look up who owns your loan using Fannie Mae’s and Freddie Mac’s online loan lookup tools, or by asking your servicer. If the investor is neither, ask the servicer directly what its policy is.

What the valuation costs

For Fannie Mae loans, the borrower pays. As of the May 2026 version of the Fannie Mae servicing guide, the mandated amounts are $190 for a broker price opinion, $450 for a restricted appraisal on a one-unit property, and $750 for an appraisal on a 2-4 unit property. The servicer can only order the valuation after it receives your payment.

That makes this a quick math problem. If your PMI is $120 a month and the valuation costs $450, you break even in under four months. If PMI is $40 a month, it takes over eleven months, so waiting for the 80% mark may make more sense.

One risk to know about

A new appraisal can also come back lower than you hoped. If the value has dropped, you may be unable to cancel early, and you will have paid for the report. Look at recent comparable sales in your own neighborhood first. Also keep in mind that a higher appraised value can be a factor in a property tax reassessment, though in Michigan taxable value is governed by its own rules, so ask your local assessor before assuming anything.

Step by step: how to request PMI cancellation

Confirm your loan type. Conventional means PMI rules apply. FHA, VA, or USDA loans have their own insurance or fee structures.
Find your original value and your PMI disclosure. Your closing documents show the purchase price and appraisal. The PMI disclosure lists the date you were first scheduled to reach 80%, and bringing a copy can speed the process.
Calculate your LTV. Divide your current principal balance by the original value. Use your latest statement, and don’t count a balance that includes a second lien.
Check your history. Look for any late payments in the past two years. One 30-day late can block a request, so know before you ask.
Send a written request. Say that you are requesting cancellation of PMI under the Homeowners Protection Act. Include your loan number and the date you reached 80%. Keep a copy and send it in a way you can track.
Pay for a valuation if asked. If you are relying on appreciation or the servicer needs to verify value, the servicer will tell you what it needs.
Watch for the response. The servicer must notify you in writing within 30 days of cancellation or termination, and any unearned premiums must be returned within 45 days after cancellation.
Check your next statement. Confirm the PMI line is gone and your escrow, if any, was adjusted correctly.

If the servicer denies your request, ask for the reason in writing. It will usually be a payment-history issue, a junior lien, or a valuation that came in short.

If you have an FHA loan

FHA borrowers often search for “removal” and find that the usual PMI advice doesn’t apply. Here is what actually works.

Check your down payment and origination date. If you put down at least 10%, your annual MIP ends after 11 years. With less than 10% down, it generally runs for the full term. These timelines come from the CFPB’s summary; loans closed long ago may follow older rules, so verify against your own documents.
Appraisals don’t help. FHA rules don’t allow a new appraisal to remove annual MIP.
Refinance into a conventional loan. If your equity is 20% or more of the home’s current value, a conventional refinance has no PMI at all. Whether it pays off depends on your new rate, closing costs, and how long you’ll stay. Our guide on when refinancing pays off in 2026 lays out the break-even math, and the refinance calculator breakdown shows what common calculators leave out.

If you are still choosing a loan, compare the long-term insurance cost before you commit. Our pieces on FHA versus conventional and what an FHA loan really costs first-time buyers cover this in detail.

Refinancing to drop PMI: when it makes sense

Refinancing is the one route that works for almost everyone with 20% equity, whether PMI or MIP. It also costs the most upfront. Before you do it, compare:

Your current rate against the rate you’d get now. Trading a low old rate for a higher one to drop PMI can cost more than it saves.
Closing costs and an appraisal on the new loan.
How long you’ll stay in the home. Our guide to comparing offers by the “in 5 years” line on the Loan Estimate is a practical way to test this.
Whether a fixed or adjustable product fits your timeline, which we cover in fixed vs adjustable.

If your debt-to-income ratio is tight, a refinance may be harder to approve than a cancellation request. See our notes on mortgage approval near 36% DTI.

What to do when your servicer gets it wrong

The CFPB issued guidance because borrowers struggled to cancel PMI even when they qualified. It also highlighted that servicers need to track termination dates correctly. Problem spots include loan modifications and interest-only periods, where the schedule can shift.

Protect yourself:

Keep your original amortization schedule and PMI disclosure.
Mark the month you should hit 80% and 78% on a calendar.
If PMI is still on your statement after the date, send a written dispute and ask the servicer to show its calculation.
If that fails, you can submit a complaint to the CFPB.

If you’re behind on payments or facing foreclosure, PMI is not your biggest problem. Read what to do within 48 hours to stop a foreclosure in Michigan first.

Our perspective

We rank mortgage lenders and agents across Wayne, Oakland, and Macomb counties, and PMI comes up constantly in the questions we see from first-time buyers. Most people don’t ask about it at closing. They ask a few years later, when they see the line on the statement and wonder whether it’s permanent.

Our view is simple. First, pick a loan with the exit in mind: a conventional loan with a small down payment and an FHA loan can have similar monthly payments on day one and very different costs ten years later. Second, don’t pay for a valuation until you’ve done the math on monthly PMI against the fee. Third, in the Detroit area, home values have moved unevenly by neighborhood, so a county-wide headline number tells you little about your own house. Use recent sales on your street.

We don’t take payment for ranking placement, and that applies to the lenders we list as well. When you ask a lender about PMI, ask them to show you in writing how and when it ends.

— Bryan

Shopping for a loan or a refinance in Metro Detroit?

If PMI is pushing you toward a refinance or you’re about to buy and want to avoid a long insurance tail, start with our ranking of the best mortgage lenders in Metro Detroit. If you’re also planning a move, our real estate agent rankings are built on the same independent research. Browse more guides on the CompareSpot blog.

FAQ

How do I get PMI removed?

On a conventional loan, send your servicer a written request once your balance reaches 80% of the original value, and confirm you have a clean payment history and no second liens. If you have not asked by the time the balance is scheduled to hit 78%, the servicer must end it automatically. On an FHA loan, you generally have to wait out the term or refinance.

Can I cancel PMI if my home value increases?

Sometimes. It is not a right under federal law, but some investors allow it. Fannie Mae’s servicer guidance uses a 75% LTV threshold for loans two to five years old and 80% after five years, based on a new valuation you pay for. Ask your servicer which policy applies to your loan.

How much does it cost to prove my home’s value for PMI removal?

For Fannie Mae loans, the servicing guide lists $190 for a broker price opinion, $450 for a restricted appraisal on a one-unit home, and $750 for an appraisal on a 2-4 unit property. Other investors may charge different amounts.

Can FHA MIP be removed?

Not by building equity or getting a new appraisal. It ends after 11 years if you put down at least 10%, and otherwise lasts the loan’s full term, according to the CFPB. Refinancing into a conventional loan with 20% equity is the common way out.