How to Get Rid of PMI on Your Mortgage
Private mortgage insurance (PMI) is an extra monthly cost on most conventional loans with less than 20% down, but it doesn't have to last forever. Here's what PMI costs, when it ends automatically, how to ask to remove it sooner, how a higher home value can help, and what to do about FHA mortgage insurance.
By Pond.com editors Updated 3 min read
Quick answer
- PMI protects the lender, not you, and is usually required on conventional loans with less than 20% down.
- You can ask to cancel it once your balance is scheduled to reach 80% of the home's original value.
- It must end automatically at 78% of the original value, if your payments are current.
- If your home's value has risen, a new appraisal may let you remove it sooner.
- FHA mortgage insurance has different rules and often can only be removed by refinancing.
If you bought your home with less than 20% down on a conventional loan, you're probably paying private mortgage insurance (PMI). It can add $100 or more to your payment each month, and it does nothing for you except help you get the loan. The good news is that you can usually get rid of it.
This article is general information, not financial or legal advice.
When PMI ends
The federal Homeowners Protection Act sets three points for most conventional loans on a main home taken out since mid-1999:
| When | What happens |
|---|---|
| Balance reaches 80% of the original value | You can ask your lender to cancel PMI |
| Balance reaches 78% of the original value | PMI must end automatically, if you're up to date on payments |
| Halfway through the loan term | PMI must end, even if you haven't reached 78% |
"Original value" means the lower of the purchase price or the appraised value when you bought. The dates are based on your original payment schedule, so extra payments get you there sooner.
How to ask for removal at 80%
- Check your balance against your original home value, or ask your servicer for the date you'll reach 80%.
- Send a written request to your servicer.
- Meet the conditions, which usually include a good payment history, no second mortgage or home equity loan, and evidence that the home hasn't lost value, which may mean an appraisal.
Removing PMI early because your home is worth more
If your home has risen in value, or you've made improvements, a new appraisal may show you already have enough equity. Rules depend on who owns your loan, but for many loans owned by Fannie Mae or Freddie Mac:
- After 2 years: your balance must be no more than 75% of the new value.
- After 5 years: no more than 80% of the new value.
Call your servicer first to ask for their exact rules and which appraiser to use, so you don't pay for an appraisal they won't accept.
Other ways to drop it
- Make extra principal payments to reach 80% sooner. See should you pay off your mortgage early?
- Refinance once you have 20% equity, if rates make sense. See refinancing a mortgage.
FHA mortgage insurance is different
FHA loans have mortgage insurance premiums (MIP), not PMI. If you put down at least 10%, MIP ends after 11 years. If you put down less, it usually lasts for the life of the loan, and the only way to remove it is to refinance into a conventional loan once you have enough equity. See types of mortgages.
Taxes
Starting with the 2026 tax year, mortgage insurance premiums can be deductible again for people who itemize, with the deduction phasing out at higher incomes. Check the current IRS rules or ask a tax preparer.
Common questions
Often around 0.3% to 1.5% of the loan amount a year, depending mainly on your credit score and down payment. On a $360,000 loan at 0.5%, that's about $150 a month.
Sometimes. If you're removing it based on your original payment schedule, the lender may still ask for proof the home hasn't lost value. If you're using a rise in value to remove it early, you'll need a new appraisal, which you usually pay for.
No. With lender-paid mortgage insurance, the cost is built into a higher interest rate for the life of the loan, so it can't be canceled. The only way out is to refinance.