How to Remove Mortgage Insurance in 2026
PMI cancellation, FHA MIP removal, and how to save $100-$250/month — starting today.
Emily Chen
NMLS #345678 · Certified Mortgage Planning Specialist
10 years helping homeowners eliminate PMI and FHA MIP. Saved clients a combined $2.4M in mortgage insurance premiums through strategic cancellation and refinancing.
PMI vs. FHA MIP: Key Difference
Conventional PMI
Cancellable once you reach 20% equity. Auto-cancels at 78% LTV. Can be removed with a new appraisal if home appreciated. Not permanent.
FHA MIP (post-June 2013, <10% down)
Permanent for life of loan. Cannot be cancelled. The only way to remove it is to refinance into a conventional loan once you have 20% equity.
How Much Is Mortgage Insurance Costing You?
| Loan Amount | PMI Rate | Monthly PMI | Annual PMI | 10-Year Total |
|---|---|---|---|---|
| $200,000 | 0.7%/yr | $117/mo | $1,400/yr | $14,000 |
| $300,000 | 0.8%/yr | $200/mo | $2,400/yr | $24,000 |
| $400,000 | 0.9%/yr | $300/mo | $3,600/yr | $36,000 |
| $500,000 | 1.0%/yr | $417/mo | $5,000/yr | $50,000 |
PMI rates vary by credit score, down payment, and lender. Higher credit scores get lower PMI rates.
5 Ways to Remove Mortgage Insurance
1. Automatic Cancellation (Conventional)
Easiest2. Request Cancellation (Conventional)
Proactive3. New Appraisal (Conventional)
Fastest if appreciated4. Refinance (FHA or Conventional)
Only option for FHA MIP5. Make Extra Payments
Accelerate timelineStep-by-Step: How to Request PMI Cancellation
Calculate your current LTV
Divide your current loan balance by the original purchase price (not current value). Example: $220,000 balance ÷ $275,000 purchase price = 80% LTV. You're eligible to request cancellation.
Check your payment history
Most lenders require no 30-day late payments in the past 12 months and no 60-day lates in the past 24 months. Pull your mortgage statement to verify.
Submit a written cancellation request
Write to your loan servicer (the company you pay each month) requesting PMI cancellation. Include your loan number, current balance, and original purchase price. Send certified mail.
Lender reviews and responds
The lender has 30 days to respond. They may approve immediately or require an appraisal to confirm value hasn't declined.
Confirm PMI is removed from your statement
Check your next 1-2 mortgage statements to confirm the PMI line item has been removed. If not, follow up immediately.
Paying FHA MIP? Refinancing to conventional could save you $150-$250/month.
Compare refinance rates from 10+ lenders. Free, no SSN required.
FHA MIP: Your Removal Options
| FHA Loan Scenario | MIP Duration | How to Remove |
|---|---|---|
| Originated after June 3, 2013, <10% down | Life of loan | Refinance to conventional only |
| Originated after June 3, 2013, ≥10% down | 11 years | Auto-cancels after 11 years |
| Originated before June 3, 2013 | Cancellable at 78% LTV | Request cancellation at 78% LTV |
Is It Worth Refinancing to Remove FHA MIP?
Example: $280,000 FHA loan (original $300K, 5 years in), 6.50% rate + 0.55% MIP
Current FHA Payment
After Refinance to Conventional
Ready to Remove Your Mortgage Insurance?
Compare refinance rates to see if removing FHA MIP makes sense for you. Free quotes, no SSN required.
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Frequently Asked Questions
How do I remove PMI from my conventional mortgage?
There are 3 ways to remove PMI from a conventional loan: (1) Automatic cancellation — lenders must cancel PMI when your loan balance reaches 78% of the original purchase price (Homeowners Protection Act). (2) Request cancellation — you can request PMI removal once you reach 80% LTV based on original value, with a good payment history. (3) New appraisal — if your home has appreciated, you can request a new appraisal to prove 80% LTV based on current value (typically requires 2+ years of payments).
Can you remove FHA mortgage insurance (MIP)?
For FHA loans originated after June 3, 2013 with less than 10% down, MIP is permanent for the life of the loan — it cannot be cancelled. The only way to remove it is to refinance into a conventional loan once you have 20% equity. For FHA loans with 10%+ down payment, MIP cancels after 11 years. For loans originated before June 3, 2013, MIP cancels at 78% LTV.
How much does PMI cost per month?
PMI typically costs 0.5-1.5% of the loan amount per year, depending on your credit score, down payment, and loan type. On a $300,000 loan: 0.5% = $125/month, 1.0% = $250/month, 1.5% = $375/month. FHA MIP costs 0.55% annually ($137.50/month on a $300K loan) plus a 1.75% upfront premium.
How long does it take to reach 20% equity to remove PMI?
On a 30-year mortgage with 5% down at 6.75%, you reach 20% equity (80% LTV based on original price) in approximately 11-12 years through regular payments alone. Home appreciation accelerates this significantly. With 10% down, you reach 20% equity in about 5-6 years. With 15% down, about 2-3 years.
Can I use a new appraisal to remove PMI faster?
Yes, if your home has appreciated. Most lenders require: at least 2 years of payments, 80% LTV based on current appraised value (some require 75% if less than 5 years), good payment history (no 30-day lates in the past 12 months), and a formal appraisal ordered through the lender ($400-$600). If approved, PMI is removed without refinancing.