On a conventional loan, you can ask your servicer to cancel PMI once your balance reaches 80% of the home’s original value, and it ends automatically at 78% if you’re current. If your home has gained value, many servicers will drop it based on a new appraisal. FHA mortgage insurance usually can’t be cancelled with less than 10% down; refinancing into a conventional loan is the common way out.
Option 1: Request removal at 80%
Under the federal Homeowners Protection Act, you can request cancellation in writing when your principal balance reaches 80% of the original value (the lower of the purchase price or appraised value at purchase). You typically need a good payment history and may need to show the home hasn’t lost value and has no second mortgage.
Option 2: Automatic removal at 78%
If you don’t ask, PMI ends automatically when your balance is scheduled to reach 78% of the original value, as long as you’re current. It also ends at the midpoint of your loan term regardless.
Option 3: Use your home’s current value
If prices have risen or you’ve made improvements, your equity may already be 20% or more based on today’s value. Many servicers allow removal based on a new appraisal, often requiring:
- At least two years of ownership, with a loan-to-value of 75% or less; or
- Five years or more, with 80% or less.
Rules vary by servicer and investor; ask yours for the exact requirements before ordering an appraisal. Estimate your value first with the home value estimator.
Option 4: Pay down principal faster
Extra principal payments move up the date you reach 80%. See the effect with the extra payment calculator, or make a lump-sum payment and ask about a recast.
FHA mortgage insurance
For FHA loans with less than 10% down, annual mortgage insurance lasts for the life of the loan; with 10% or more down, it ends after 11 years. Once you have about 20% equity, refinancing into a conventional loan can remove it. Check whether the savings beat the costs with the refinance break-even tool.
How to ask
Call your servicer or check its website for the PMI cancellation process, then send a written request. Keep copies, and check your next statement to make sure the charge is gone.
Common questions
Can I remove PMI if my home value went up?
Often yes. Many servicers allow removal based on a new appraisal, commonly after two years with 75% loan-to-value or five years with 80%.
Does PMI go away automatically?
Yes, at 78% of the original value on your scheduled payments if you’re current, and at the loan’s midpoint at the latest.
How do I get rid of FHA mortgage insurance?
With less than 10% down it lasts for the life of the loan, so most borrowers refinance into a conventional loan once they have about 20% equity.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.