When can I remove PMI from my mortgage?

You can request PMI removal when you reach 20% equity (80% LTV). PMI is automatically cancelled at 22% equity (78% LTV). You can reach 20% equity through: paying down your mortgage, home value appreciation, or a combination. Request removal in writing to your lender.

How do I request PMI removal?

To remove PMI: (1) Calculate if you have 20% equity, (2) Write a letter to your lender requesting cancellation, (3) Pay for a new appraisal if needed ($300-$500), (4) Ensure you're current on payments with good payment history, (5) Wait for lender confirmation. The process takes 2-4 weeks.

Can I remove FHA mortgage insurance (MIP)?

FHA MIP rules are different from conventional PMI. For FHA loans after June 2013: If you put down less than 10%, MIP lasts the LIFE of the loan (only removed by refinancing). If you put down 10%+, MIP can be removed after 11 years. Refinancing to a conventional loan is often the best way to eliminate FHA MIP.

PMI Removal 2026: When & How to Cancel Mortgage Insurance

Equity Level	LTV Ratio	PMI Status	Action Required
Less than 20%	Above 80%	Required	Keep paying PMI
20% equity	80%	Can Request Removal	Write to lender, may need appraisal
22% equity	78%	Automatic Cancellation	Lender must remove (by law)
Midpoint of loan	Any	Must Be Cancelled	Final termination date

What Is PMI?

Private Mortgage Insurance (PMI) protects the lender if you default on your loan. It's required on conventional loans when you put down less than 20%.

PMI costs: 0.5% to 1.5% of your loan amount per year, or $50-$300/month on a typical mortgage. It does NOT protect you—only the lender.

How to Request PMI Removal (Step-by-Step)

📋 PMI Removal Checklist

Step 1: Calculate your equity
Current home value - mortgage balance = equity. Need 20%+ of home value.
Step 2: Check your payment history
Must be current on payments, no 30-day lates in past 12 months.
Step 3: Write a formal request letter
Send to your loan servicer requesting PMI cancellation.
Step 4: Order a new appraisal (if needed)
Costs $300-$500. Required if relying on home appreciation.
Step 5: Wait for confirmation
Lender has 30 days to respond. Get cancellation in writing.

3 Ways to Reach 20% Equity

1. Pay Down Your Mortgage

Every payment builds equity. You can also make extra principal payments to reach 20% faster.

Example:

$400,000 home, $360,000 loan (10% down). Need $80,000 equity (20%).

Current equity: $40,000. Need to pay down $40,000 more in principal.

2. Home Value Appreciation

If your home's value increases, your equity percentage goes up automatically. You'll need a new appraisal to prove the higher value.

Example:

Bought for $400,000 with $360,000 loan. Home now worth $450,000.

Equity: $450,000 - $360,000 = $90,000 (20% of $450,000). PMI can be removed!

3. Combination (Most Common)

Most homeowners reach 20% through a combination of paying down the mortgage AND home appreciation. This is the fastest path.

FHA Mortgage Insurance (MIP) — Different Rules!

⚠️ FHA MIP Cannot Be Removed Like PMI

FHA loans have different rules. For loans after June 3, 2013:

Less than 10% down: MIP lasts the LIFE of the loan
10% or more down: MIP can be removed after 11 years
Only way to remove early: Refinance to a conventional loan

If you have an FHA loan and 20%+ equity, refinancing to conventional may save you money.

Sample PMI Cancellation Letter

[Your Name]

[Your Address]

[Date]

[Loan Servicer Name]

[Servicer Address]

Re: PMI Cancellation Request

Loan Number: [Your Loan Number]

Property Address: [Your Property Address]

Dear Sir/Madam,

I am writing to request cancellation of Private Mortgage Insurance (PMI) on my mortgage loan referenced above. Based on my calculations, my current loan-to-value ratio is approximately [XX]%, which is below the 80% threshold for PMI cancellation.

I have maintained a good payment history with no late payments. I request that you initiate the PMI cancellation process. Please advise if a new appraisal is required.

Please confirm receipt of this request and provide the next steps.

Sincerely,

[Your Signature]

[Your Printed Name]