Why Isn’t There One Simple Date?
Because PMI removal can depend on:
- Original property value
- Current loan balance
- Payment history
- Borrower request
- Automatic termination rules
- New appraisal/value rules in some circumstances
Borrower-Requested Cancellation
Certain federal protections allow borrowers to request cancellation after meeting applicable conditions.
The servicer may require:
- Good payment history
- No subordinate liens affecting the requirement
- Evidence the property value has not declined
- Other qualifying conditions
Automatic Termination
Certain PMI can terminate automatically when statutory thresholds are reached under the original amortization schedule, subject to applicable law.
Can Home Appreciation Help?
Potentially, depending on servicer/investor rules.
A borrower may sometimes request review based on current property value, but a new appraisal or valuation may be required.
Learn what an appraisal actually looks for in Appraisal vs. Home Inspection, and get a starting read on value with What’s My Home Worth?.
Don’t Confuse PMI With FHA MIP
FHA mortgage insurance follows different rules.
A homeowner should not assume:
“My friend removed PMI at 80% LTV, so my FHA mortgage insurance disappears the same way.”
The FHA MIP structure is explained in What Is Mortgage Insurance?.
Should I Refinance Instead?
Maybe.
But refinancing creates a new loan and potentially new:
- Interest rate
- Closing costs
- Term
- Fees
Removing PMI without refinancing may be preferable when possible.
If you do consider a new loan, compare more than the rate: see Lowest Rate vs. Best Loan.
How Lisa Helps
PMI cancellation is governed by the loan contract, federal law and your servicer, so your servicer and lender are the authoritative source for your situation.
Lisa can help with the property side: current market evidence, comparable sales, and connecting you with the right appraisal or value resources in Greater Las Vegas.
