Information checked: September 9, 2026.
Private mortgage insurance protects the lender, not the homeowner. For many conventional mortgages on a principal residence, federal law provides a borrower-requested cancellation point, automatic termination, and final termination.
Key answer: You can generally request PMI cancellation in writing when the scheduled principal balance reaches 80% of the home's original value, or earlier after extra principal payments reach that level. Automatic termination generally occurs at the scheduled 78% point if payments are current. FHA and VA mortgage insurance follow different rules.
Table of contents
- The 80% request rule
- The 78% automatic rule
- Final termination
- Documents and appraisal
- Loans with different rules
- Frequently asked questions
The 80% request rule
CFPB says the right applies to many single-family principal-residence mortgages closed on or after July 29, 1999. “Original value” generally means the lower of the purchase price or original appraisal; after refinancing it generally means the refinance appraisal.
The request must be written. The borrower must be current, have a good payment history, certify there are no junior liens, and provide evidence if required that property value has not declined below original value.
The 78% automatic rule
The servicer generally must automatically terminate PMI on the date the scheduled balance reaches 78% of original value, even if actual payments have reduced the balance faster. The borrower must be current; otherwise termination follows after the account becomes current.
Final termination
PMI must generally end the month after the midpoint of the original amortization schedule if the borrower is current, even when the balance has not reached 78%. On a 30-year loan, the midpoint is after 15 years. This matters for interest-only, balloon, or forbearance structures.
Documents and appraisal
- Find the PMI disclosure from closing.
- Ask the servicer for the scheduled 80% and 78% dates.
- Request cancellation in writing and retain proof.
- Ask whether an appraisal or valuation is required and who may perform it.
- Confirm the effective date on a later statement.
Appreciation-based early cancellation may be available under investor rules, but it is not the same as the federal original-value test.
Loans with different rules
FHA mortgage insurance, VA loan fees, lender-paid mortgage insurance, high-risk loans, investment properties, and multi-unit loans can follow different rules. Identify the loan type and investor before relying on 80% or 78%.
Frequently asked questions
Does a current appraisal automatically remove PMI?
No. The servicer applies federal, investor, and loan requirements.
Do extra payments move automatic termination earlier?
Automatic termination uses the scheduled 78% date, but extra principal can support an earlier written request at 80%.
Does this apply to FHA?
No. FHA mortgage insurance cancellation depends on FHA loan rules and origination details.
Final checklist
Confirm the loan type, retrieve the disclosure, calculate using original value, submit a written request, satisfy payment and lien conditions, and verify removal on the statement.
Related guides
- Mortgage Escrow Shortage Explained: Why Payments Rise and What You Can Do
- FHA Mortgage Insurance Refund: How to Check HUD Records and Claim Money