How to Remove PMI in 2026: 4 Ways to Cancel Mortgage Insurance

The Homeowners Protection Act requires lenders to automatically cancel PMI when your loan balance reaches 78% of the original home value. You do not need to do anything — your lender must cancel it. The only requirement is that your payments are current.

Best for: Homeowners who are patient and near the 78% threshold

You can request PMI cancellation at 80% LTV if your home has appreciated or you have paid down the balance. Your lender will order an appraisal to verify current value. If your LTV is 80% or below, PMI is removed within 30 days.

Best for: Homeowners in appreciating markets or who made extra payments

If you have an FHA loan, MIP cannot be removed (unless you put 10%+ down). The only way out is to refinance into a conventional loan. If your home has appreciated to give you 20% equity, you can refinance with no PMI. Compare lenders to find the best rate.

Best for: FHA borrowers and those who can also get a lower interest rate

Making extra principal payments reduces your loan balance faster. Even $200/month extra can help you reach 80% LTV 3-4 years sooner. Once you hit 80%, request cancellation with an appraisal. The PMI savings will quickly cover the appraisal cost.

Best for: Homeowners who can afford extra payments and want to build equity faster

When does PMI automatically cancel?

By law (Homeowners Protection Act), your lender must automatically cancel PMI when your loan balance reaches 78% of the original home value, provided your payments are current. For a $300,000 home with 5% down, this typically happens around year 9-10 of a 30-year mortgage.

Can I remove PMI before 78% LTV?

Yes. You can request PMI cancellation at 80% LTV if you have a good payment history. You will need to prove your home value through a lender-ordered appraisal (typically $500-800). If your home has appreciated, you may reach 80% LTV much sooner than expected.

How much does PMI cost per month?

PMI typically costs $30 to $70 per month per $100,000 of the loan amount. On a $300,000 mortgage, expect to pay $90-$210/month. The exact cost depends on your credit score, down payment amount, and loan type. Over a year, that is $1,080-$2,520 in unnecessary insurance.

Is FHA MIP different from PMI?

Yes. FHA loans require Mortgage Insurance Premium (MIP), which is different from PMI. For FHA loans with less than 10% down, MIP lasts for the entire life of the loan. The only way to remove it is to refinance into a conventional loan. For FHA loans with 10%+ down, MIP cancels after 11 years.

Can I remove PMI by refinancing?

Yes. Refinancing from an FHA loan to a conventional loan is the most common way to remove MIP. If your home has appreciated enough to give you 20% equity, you can refinance into a conventional loan with no PMI. This can save $100-400/month, but factor in closing costs (2-5% of loan amount).

Does making extra payments help remove PMI faster?

Yes. Making extra principal payments reduces your loan balance faster, helping you reach 80% LTV sooner. Even $100/month extra can remove PMI 2-3 years earlier. Once you reach 80% LTV, request cancellation with an appraisal — the savings will quickly cover the appraisal cost.