Private Mortgage Insurance (PMI) can add hundreds of dollars to your monthly mortgage payment—but the good news is, it doesn’t have to last forever. If you’re a homeowner, you may be eligible to cancel PMI and start saving sooner than you think.
PMI is a type of insurance that protects your lender—not you—if you stop making payments on your loan. It’s typically required when you put down less than 20% on a conventional mortgage.
There are a few key ways homeowners can remove PMI:
Once your loan balance drops to 80% of your home’s original value, you can request PMI removal from your lender.
Your lender is required to automatically cancel PMI once your loan reaches 78% of the original home value, as long as you're current on payments.
If your home has appreciated significantly, you may qualify for early PMI removal through a new appraisal—even if you haven’t reached 20% equity through payments alone.
PMI must be removed when you reach the midpoint of your loan term (for example, year 15 on a 30-year mortgage), assuming you're up to date on payments.
Lenders typically require:
Follow these steps to cancel PMI:
Yes—refinancing your mortgage is another way to eliminate PMI. If your home value has increased or you’ve built enough equity, a refinance could remove PMI and potentially secure a better interest rate.
Every situation is different, and timing matters. If you’re not sure whether you qualify yet, we can help you evaluate your options.
Call a Loan Officer at (888) 855-1423 to analyze your options or apply online.