How to get rid of PMI early

Your PMI doesn't have to wait for the automatic cutoff. Here's how to request removal early, what your servicer can require, and the appraisal-cost math worth doing first.

If you're paying private mortgage insurance, here's something worth knowing: you may not have to wait for it to fall off on its own. PMI is the monthly charge you took on for putting less than 20% down on a conventional loan — and federal law gives you the right to get rid of it on a schedule you can actually push forward. Our companion piece, PMI vs MIP, explains when PMI ends automatically; this one is about how to make it end sooner.

One important boundary first: this is about conventional loans. If you have an FHA loan, what you pay is MIP, not PMI, and it follows completely different rules — on most FHA loans today it doesn't simply cancel, and the usual way out is to refinance into a conventional loan once your equity supports it. So if you're FHA, the rest of this isn't your path; the refinance route is.

The three ways PMI ends

Federal law — the Homeowners Protection Act — gives conventional borrowers three exits, and they matter in different ways:

You request it at 80%. When your loan balance is scheduled to reach 80% of the home's original value, you have the right to ask your servicer to cancel PMI. This is the lever you control.
It cancels automatically at 78%. When your balance reaches 78% of original value, the servicer must drop PMI on its own — provided you're current on payments. You don't have to do anything, but you also don't have to wait for it if you can hit 80% sooner.
It ends at the loan's midpoint regardless. Even if your balance somehow hasn't hit 78%, PMI must end the month after the halfway point of your loan's term (year 15 of a 30-year loan).

"Original value," for the 80% and 78% marks, generally means the lower of your purchase price or the home's appraised value at the time you bought it — not today's value. (If you refinanced, it's the appraised value at the refinance.)

How to request removal early

The request route is the one with leverage, because you can reach 80% faster than the schedule by paying down principal — or by your home gaining value. Here's the process:

Confirm your number. Find the date your balance is scheduled to hit 80%; it's on the PMI disclosure you got at closing, or your servicer can tell you. If you've made extra principal payments, you may already be there ahead of schedule.
Check that you qualify. The law lets the servicer require a clean recent record: generally no payment 60+ days late in the last two years (or 30+ days late in the last year), no second mortgage or HELOC sitting behind the first, and no decline in the home's value.
Put the request in writing. Servicers generally require a written cancellation request. Keep it simple: your loan number, a clear request to cancel PMI, and a note that you've reached (or are reaching) 80%.
Expect a possible appraisal. The servicer may require a new appraisal — at your expense — to confirm the home still supports the value. Which leads to the one piece of math worth doing first.

The appraisal-cost math nobody mentions

Hypothetical example — illustrative rate, not a quote or offer of credit.

If removal depends on a new appraisal, that appraisal isn't free — it can run several hundred dollars. So before you order one, do the quick comparison: how much is PMI costing you per month, and how many months until it would drop automatically anyway? If your PMI is $120 a month and automatic cancellation is three months away, paying $500 for an appraisal to remove it early doesn't pay off. If it's $200 a month and you're two years from the automatic mark, the appraisal pays for itself almost immediately. The early request is a great tool — but it's worth being sure the tool is cheaper than the problem.

The other early route: your home gained value

If your home has appreciated — through the market or through improvements you've made — you may be able to remove PMI based on current value rather than waiting to pay the balance down to 80% of the old value. This almost always requires a new appraisal (or sometimes a broker price opinion), and the servicer will want to see that you're current and, often, that you have a solid payment history. If you've made real improvements, gather the list with costs and dates — it supports the case.

What to do

Find your 80% date on your closing PMI disclosure or by asking your servicer — and check whether extra payments have already gotten you there.
Do the appraisal-cost math before ordering anything: monthly PMI times months-until-automatic versus the appraisal fee.
Send a written request once you're at (or near) 80% and you meet the clean-record conditions.
If your home has clearly gained value, ask specifically about value-based removal — and have your improvement records ready.

PMI is meant to be temporary, and you have more control over the "when" than most people realize. The automatic cutoffs are your backstop; the written request at 80% is your accelerator.

Sources

PMI cancellation rights come from federal law, but a servicer's specific documentation and appraisal requirements vary, and these rules apply to conventional loans only (FHA MIP is different). Confirm your loan's specifics with your servicer, and if you're not sure whether you have PMI or MIP, your loan officer can tell you.