On a conventional loan, PMI (private mortgage insurance) can usually be removed once you have enough equity in the home. In most cases, that means your loan balance must be at or below 80% of the home’s value, though the exact process depends on your loan servicer and whether you’re using the original value or a new appraisal.

There are a few common ways PMI comes off:

- **Borrower-requested removal at 80% loan-to-value:** You can typically ask your loan servicer to remove PMI once your loan balance reaches 80% of the home’s original value based on the purchase price or appraised value, whichever was lower.
- **Automatic termination at 78% loan-to-value:** For many conventional loans, PMI must automatically terminate when the loan is scheduled to reach 78% of the original value, as long as you are current on payments.
- **Midpoint termination:** PMI may also end at the midpoint of the loan term, even if the loan balance has not reached 78%, assuming the loan is current.
- **Removal based on increased home value:** If your home has appreciated, or you have made substantial improvements, your servicer may allow PMI removal based on a new appraisal or broker price opinion. Requirements vary, and some servicers require you to have had the loan for a minimum period first.

To start the process, contact your loan servicer and ask for their PMI cancellation requirements in writing. They may require:

- A good payment history
- No recent late mortgage payments
- A formal written request
- An appraisal ordered through the servicer
- Confirmation there are no junior liens, such as a second mortgage or HELOC

It’s important not to order your own appraisal without checking first, because many servicers will only accept valuations they order directly. If your loan is FHA, the rules are different; FHA mortgage insurance often cannot be removed without refinancing.

# How PMI Removal Works on a Conventional Loan

Private Mortgage Insurance (PMI) on a conventional loan can be removed in three main ways, governed by the Homeowners Protection Act (HPA) of 1998.

## 1. Automatic Termination (78% LTV)
Your lender is **required by law** to automatically cancel PMI once your loan balance reaches 78% of the home's original purchase price, based on your original amortization schedule. You don't need to request it — it just happens, provided you're current on payments.

## 2. Borrower-Requested Cancellation (80% LTV)
You can request PMI removal once you reach 80% LTV. Two paths here:

- **Based on original value:** Once your scheduled balance hits 80% of original purchase price, submit a written request. No appraisal typically required if you have a good payment history.
- **Based on current value:** If your home has appreciated or you've made improvements, you can request removal based on current market value. This usually requires:
- A new appraisal (at your expense, typically $500–$700)
- Loan seasoning of at least 2 years (or 5 years if requesting at 75% LTV based on appreciation alone)
- On-time payment history (no 30-day lates in past 12 months, no 60-day lates in past 24 months)

## 3. Final Termination (Midpoint of Loan)
If somehow neither of the above happens, PMI must be removed at the midpoint of your amortization schedule (year 15 of a 30-year loan), regardless of LTV.

## Practical Steps to Request Removal
1. Contact your loan servicer in writing
2. Confirm payment history requirements are met
3. Order an appraisal if using current value
4. Servicer reviews and processes — generally 30–60 days

## Important Notes
- These rules apply to **conventional loans only**. FHA mortgage insurance (MIP) follows different rules and often requires refinancing to remove.
- Lender-paid PMI (LPMI) generally cannot be removed without refinancing.
- Investment properties and second homes may have stricter LTV thresholds (often 70–75%).

Tracking your amortization schedule and home value puts you in control of when PMI comes off.

Private Mortgage Insurance (PMI) on a conventional loan is typically removed automatically when your loan balance reaches 78% of your home's original value, or you can request early removal when the balance hits 80%. Unlike FHA loans, conventional PMI is not permanent and can be eliminated once you build enough equity.

Here is how the PMI removal process generally works:

* **Automatic Termination:** By law, your mortgage servicer must automatically cancel your PMI once your principal balance drops to 78% of the home's original appraised value or purchase price (whichever was lower). You must be current on your payments for this to happen.
* **Borrower-Requested Cancellation:** You can request PMI cancellation in writing as soon as your loan balance reaches 80% of the original value. You can reach this milestone through your regular monthly payments or by making extra principal payments.
* **Cancellation Based on Current Value:** If your home's value has increased due to market conditions or major renovations, you may qualify to remove PMI early. This generally requires a new appraisal ordered by your servicer. Lenders typically require you to have held the loan for at least two years before using a new appraisal, and you usually need 20% to 25% equity depending on the age of the loan.
* **Refinancing:** If you have at least 20% equity in your home based on its current market value, you may choose to refinance into a new conventional loan without PMI.

To successfully remove PMI, lenders generally require a strong payment history with no late payments in the past 12 to 24 months. You also typically cannot have any secondary liens, such as a home equity loan, on the property. If you believe you have reached the 20% equity threshold, contact your mortgage servicer to start the written request process.