How to Remove PMI (Step by Step)

Updated upon publication of this page.

The federal Homeowners Protection Act of 1998 gives you the right to have PMI removed once your loan balance reaches 80 percent of the original home value. Here is exactly how to do it.

Step-by-step process HPA-based rights CFPB complaint path

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The three ways PMI gets removed

Under 12 U.S.C. § 4901 (the Homeowners Protection Act), conventional PMI must be removed in one of three ways. The first is proactive on your part; the other two happen automatically.

Borrower-requested cancellation at 80% LTV. You submit a written request once your balance reaches 80 percent of the original home value. This is the fastest path.
Automatic termination at 78% LTV. Your servicer must terminate PMI on the date your balance is scheduled to reach 78 percent of the original value.
Final termination at loan midpoint. If PMI has not been removed by the above two rules, it terminates on the first day of the month after the amortization midpoint.

This guide focuses on the fastest path: requesting cancellation at 80% LTV.

Step 1: Check your current LTV

Pull your most recent mortgage statement. It shows your current principal balance. Divide this by the original home value (your purchase price, or the appraised value at closing, whichever your lender used). This gives your current scheduled LTV.

Example: You bought a home for $400,000 and your current balance is $319,000. Your LTV is 319,000 / 400,000 = 79.75 percent. You are below 80 percent and eligible to request cancellation.

If your balance is still above 80 percent, use our PMI removal calculator to project exactly when you will reach 80 percent based on your original schedule or with extra payments.

Step 2: Confirm you qualify

The HPA sets four conditions for borrower-requested cancellation. All must be met.

Your mortgage balance is at or below 80 percent of the original home value (based on the lower of original purchase price or original appraisal).
You are current on your mortgage payments.
You have a good payment history: no payments more than 30 days late in the past 12 months, and no payments more than 60 days late in the past 24 months.
You can certify that the property has no junior liens (second mortgages or home equity lines) that would push the combined LTV above 80 percent.
If the servicer requests it, you provide evidence that the property value has not declined below the original value (usually an appraisal, paid by you).

Step 3: Submit a written cancellation request

Call your mortgage servicer first to confirm their exact process. Each servicer has a specific department and address or online portal for PMI cancellation requests. Then submit a written request. A simple letter works. Include the following:

Your name as it appears on the loan
Your loan number
The property address
A clear statement: "I am requesting cancellation of Private Mortgage Insurance on this loan under the Homeowners Protection Act of 1998."
Your current balance and the original home value, showing LTV at or below 80 percent
Confirmation that you are current on payments and have no second mortgages affecting LTV
Your signature and date
Your contact information

Send by certified mail with return receipt, or use the servicer's online secure message system. Keep a copy for your records. If you fax or email, follow up with a phone call to confirm receipt.

Step 4: Pay for an appraisal if required

Most servicers require a Broker Price Opinion (BPO) or full appraisal to confirm the home has not declined in value. This typically costs $150 to $650 and is paid by you. The servicer orders the appraisal from an approved vendor; you cannot use your own appraiser.

If the appraisal confirms the value is at or above the original, your cancellation moves forward. If the value has declined and current LTV is now above 80 percent, cancellation is denied. You can either wait and pay down more principal or try again when the market improves.

Step 5: Verify PMI is removed from your statement

Servicers must process a complete, qualifying request within 30 days of receipt. After PMI is cancelled, your monthly payment should drop by the exact PMI amount. Watch your next one or two mortgage statements to confirm the change. If PMI is not removed, write to the servicer again and reference the Homeowners Protection Act.

What if your lender refuses

If you meet all the conditions and the servicer still refuses, file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint. The HPA is federal law. Servicers that violate it face enforcement action. The CFPB complaint process is free, takes about 15 minutes to file, and typically prompts a response from the servicer within 15 days.

Removing PMI based on appreciation

If your home has gained value, you may qualify to remove PMI earlier based on the current (higher) value rather than the original. This path is not covered by the HPA; it is a Fannie Mae/Freddie Mac investor guideline. Rules vary by loan age and investor.

Fannie Mae guidelines (loans 2+ years old)

Loan at least 2 years old: current LTV must be 80% or less based on an appraisal
Loan less than 5 years old: current LTV must be 75% or less
You pay for the appraisal (ordered by the servicer)
Good payment history requirement still applies

Freddie Mac guidelines

Freddie Mac has similar but slightly different criteria. Call your servicer and ask specifically about "appreciation-based PMI cancellation" or "removing PMI based on current value."

Removing MIP from an FHA loan

FHA MIP works very differently. Under current rules for loans originated after June 3, 2013:

If your original LTV was 90% or less (10%+ down), MIP cancels automatically after 11 years.
If your original LTV was above 90% (less than 10% down), MIP lasts the entire loan term. The only way to remove it is to refinance into a conventional loan.

See our FHA MIP calculator for complete details.

Three mistakes to avoid

Mistake 1: Not requesting cancellation and waiting for 78%

The 78% automatic termination is based on the scheduled payoff of your loan. If you have been making extra payments and are already at 80 percent, waiting for the automatic 78 percent date means paying PMI for months or years you do not need to. Always request cancellation yourself at 80 percent.

Mistake 2: Calculating LTV against current home value instead of original

HPA cancellation is based on original value, not current value. Even if your home has doubled, you cannot use that to request HPA cancellation at 80 percent. You can use the current value for appreciation-based cancellation, which is a separate investor guideline, but the HPA rights are tied to original value.

Mistake 3: Not reading your initial PMI disclosure

At closing, your lender gave you an initial PMI disclosure form showing exactly when your scheduled 78 percent termination date is. Keep this document. If you lost it, request a copy from your servicer. Having it on hand is the fastest way to know exactly when PMI must end.