How to Remove PMI in 2026: 4 Ways to Cancel Mortgage Insurance
Save $100-$400/month · Stop paying for insurance you don't need · 4 proven methods
Most homeowners overpay PMI by 2-4 years — don't be one of them
Quick Answer
You can remove PMI through 4 methods: (1) wait for automatic cancellation at 78% LTV, (2) request cancellation at 80% LTV with an appraisal, (3) refinance into a conventional loan if you have 20% equity, or (4) make extra payments to reach 80% LTV faster. FHA MIP requires refinancing to a conventional loan. Compare refinance options at MRC to see if refinancing makes sense for you.
How Much PMI Costs You Every Month
| Loan Amount | Monthly PMI (Low) | Monthly PMI (High) | Annual Cost | 10-Year Cost |
|---|---|---|---|---|
| $150,000 | $45 | $105 | $540-$1,260 | $5,400-$12,600 |
| $250,000 | $75 | $175 | $900-$2,100 | $9,000-$21,000 |
| $350,000 | $105 | $245 | $1,260-$2,940 | $12,600-$29,400 |
| $500,000 | $150 | $350 | $1,800-$4,200 | $18,000-$42,000 |
4 Ways to Remove PMI
Automatic Cancellation at 78% LTV (Free)
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
Request Cancellation at 80% LTV with Appraisal
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
Refinance to a Conventional Loan
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
Make Extra Payments to Reach 80% LTV Faster
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
Ready to ditch PMI?
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FHA MIP vs Conventional PMI: Key Differences
| Feature | Conventional PMI | FHA MIP |
|---|---|---|
| When removable | At 80% LTV (request) or 78% (auto) | Life of loan (if <10% down) |
| Removal method | Appraisal or automatic | Must refinance to conventional |
| Upfront premium | None | 1.75% of loan amount |
| Monthly cost | $30-$70 per $100K | $45-$105 per $100K |
| 10%+ down exception | No PMI at 20% down | MIP cancels after 11 years |
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Compare Refinance Lenders →How to Remove PMI with an Appraisal: Step by Step
Check your current LTV
Look up your loan balance and compare to your home's estimated value. Use Zillow or Redfin for a rough estimate. If you think you are near 80% LTV, proceed.
Contact your lender
Call your mortgage servicer and request PMI cancellation. They will explain their specific requirements and order an appraisal.
Pay for the appraisal ($500-$800)
The lender orders the appraisal from a licensed appraiser. You pay for it. The appraiser visits your home and determines its current market value.
Appraiser verifies 80% LTV
If the appraisal shows your loan balance is 80% or less of the home value, your lender must cancel PMI within 30 days.
Enjoy your savings
PMI is removed from your monthly payment. On a $300K loan, that is $90-$210/month back in your pocket — $1,080-$2,520/year.
Related Guides
Frequently Asked Questions
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.Check your personalized rate →
→ Compare refinance lenders to remove PMI — free, no obligationCan 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.Check your personalized rate →
→ Compare refinance lenders to remove PMI — free, no obligationHow 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.Check your personalized rate →
→ Compare refinance lenders to remove PMI — free, no obligationIs 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.Check your personalized rate →
→ Compare refinance lenders to remove PMI — free, no obligationCan 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).Check your personalized rate →
→ Compare refinance lenders to remove PMI — free, no obligationDoes 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.Check your personalized rate →
Written by
Mortgage-Info Editorial Team
Editorial & Research Team
Our editorial team researches this topic using primary sources and published lender/program data, and reviews this content regularly for accuracy.
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