Tygart Media · Mortgage Servicer Playbooks · PMI
QUICK ANSWEROriginally published at servicer.tygartmedia.com · Reviewed October 4, 2026
The short answer: PMI isn’t forever. Under federal law you can generally request cancellation once your balance hits 80% of the home’s original value (with a good payment history), and the servicer must terminate it automatically at 78%. If your home has appreciated, a new appraisal can get you there faster — but expect the servicer to set conditions.
The two federal milestones
- 80% — you can ask. Once your loan balance drops to 80% of the home’s original value, you can request cancellation in writing. You generally need a good payment history (no recent lates) and sometimes proof the value hasn’t declined.
- 78% — it’s automatic. When the balance is scheduled to reach 78% of original value and you’re current, the servicer must terminate PMI on its own. You shouldn’t have to ask — but check your statement, because “should” and “did” are different things.
Note: these are original-value percentages based on the amortization schedule — extra principal payments can get you to 80% faster.
The appreciation shortcut
If your home’s value has risen, you may not need to wait for the balance to drop. Many servicers will cancel PMI based on a current appraisal showing your loan is 80% or less of today’s value. The catch: you usually pay for the appraisal, the servicer picks or approves the appraiser, and some loans require a seasoning period (often around two years) before they’ll consider it.
The servicer runaround — and how to beat it
- “We never got your request.” Send it in writing, keep proof.
- Endless new conditions. Ask for their PMI-cancellation requirements in writing up front — then meet them exactly.
- “Automatic” termination that never happens. Watch your statements at the 78% mark. If PMI is still there, that’s a notice-of-error situation.
Editor's Note
FHA loans play by different rules The 80/78 framework above is for conventional loans. FHA mortgage insurance (MIP) generally can’t be canceled the same way — it often lasts the life of the loan unless you refinance into a conventional mortgage. If you have an FHA loan, check your specific MIP terms before planning around PMI rules.
Disclaimer
Informational only — not legal or financial advice.
Mortgage rules vary by loan type, servicer, and state. Check your own loan documents and official federal resources, or talk to a licensed professional, before acting.
PMI removal paths
| Path | Requirement | Note |
|---|---|---|
| Borrower-requested | 80% LTV + good payment history | You must ask — it isn’t automatic |
| Automatic termination | 78% LTV on the amortization schedule | Happens by law, but check it’s applied |
| New appraisal | Home value rose enough to hit 80% | You pay for the appraisal (~$300–500) |
| Refinance | New loan at ≤80% LTV | Resets the clock — weigh closing costs |
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