After you close
When can I get rid of my mortgage insurance?
There are multiple paths to removing PMI on a conventional loan. Which one applies depends on your loan balance, property value, and how long you have had the loan.
This page focuses on conventional (non-government) loans. FHA mortgage insurance follows different rules, noted separately below. All estimates are illustrative. Contact your servicer for official eligibility.
The rates and costs on this page are illustrations chosen to explain the math. They are not quotes. Real pricing changes daily and varies by lender, loan program, and scenario.
Need the quick version?See the key points
- Automatic cancellation is generally tied to the original value and original payment schedule, not today's estimated home value.
- Borrower-requested removal may become available sooner when extra principal payments reduce the balance to the required level.
- Removal based on current value may require an appraisal, sufficient equity, payment history, and a minimum ownership period.
- Refinancing can remove mortgage insurance when the new loan and current property value support it, but refinancing has its own costs.
- Mortgage insurance rules vary by loan structure, so not every loan follows the same cancellation paths.
Four ways to remove PMI from a conventional loan.
Each path has its own requirements. Some happen automatically. Some require you to initiate. All of them are based on reaching a specific loan-to-value ratio (often abbreviated LTV, which is simply your loan balance divided by the property value, expressed as a percentage). The question is how that ratio is measured and what the threshold is.
Automatic cancellation at 78% LTV (original value)
Your servicer must cancel PMI once the balance is scheduled to reach 78% of the original appraised value based on the original amortization schedule. No action required. This date is fixed at closing and is not affected by extra payments.
Borrower-initiated cancellation at 80% LTV (original value)
You can request cancellation once you reach 80% LTV against the original value. Requires good payment history and no subordinate liens. Principal reductions count.
Removal based on current value (appreciation or improvements)
If the property has appreciated, you can request removal based on a new appraisal. The loan-to-value requirement depends on loan age: 75% for loans 2 to 5 years old, 80% for loans over 5 years. Loans under 2 years are generally not eligible through this path.
Refinance (no minimum waiting period required)
Refinancing into a new loan can eliminate PMI, assuming the new total loan amount (including any rolled-in closing costs) remains at or below 80% LTV. This can be done at any time. Whether it makes sense depends on whether the new rate is lower than your effective rate (current rate + PMI cost expressed as a rate equivalent).
Principal reductions matter for borrower-initiated and current-value paths. Extra payments, lump sums, or any reduction to the loan balance counts toward reaching the LTV threshold on paths 2, 3, and 4. Automatic cancellation (path 1) is based solely on the original amortization schedule and is not accelerated by extra payments.
Estimate your PMI removal timeline.
Input example loan details below, then select a removal path to see the estimated eligibility. Each tab shows a different method with its specific requirements and thresholds.
Example loan details
The loan amount at closing (found on your original closing disclosure).
Principal and interest only. Do not include escrow, taxes, or insurance.
Best estimate of what the property would appraise for today.
These are illustrative inputs. Your servicer's records are the official source for your loan details.
Fill out all fields above to see removal options.
How FHA mortgage insurance removal works.
FHA loans have their own mortgage insurance program called MIP (mortgage insurance premium) that does not follow the same cancellation rules as conventional PMI. The rules depend on when the loan was originated and the original loan-to-value ratio:
FHA loans originated after June 3, 2013
- Original LTV greater than 90%: MIP lasts for the life of the loan
- Original LTV 90% or less: MIP lasts for 11 years
FHA loans originated before June 3, 2013
Older FHA loans may be eligible for MIP cancellation once the LTV reaches 78% and the loan has been in force for at least 5 years. Check with your servicer for specifics.
The only way to remove FHA MIP on most post-2013 loans is to refinance into a conventional loan at 80% LTV or less. This eliminates the FHA insurance entirely and replaces it with no PMI requirement (assuming the new loan is at or below 80% LTV).
Key takeaways for getting rid of PMI.
PMI on conventional loans is temporary. There are multiple paths to removal, each with specific requirements.
Automatic cancellation happens at 78% LTV based on the original amortization schedule (not affected by extra payments). Borrower-initiated cancellation is available at 80% LTV of the original value, and extra payments do count toward this threshold.
Removal based on current value requires the loan to be at least 2 years old, with a 75% loan-to-value threshold for loans 2 to 5 years old and 80% for loans over 5 years.
Principal reductions from extra payments or lump sums count toward reaching the LTV threshold on borrower-initiated, current-value, and refinance paths. Automatic cancellation is based solely on the original schedule.
Refinancing can eliminate PMI assuming the new total loan amount (including any rolled-in closing costs) remains at or below 80% of the property value. No minimum waiting period. Whether it makes sense depends on the new rate compared to your effective rate (current rate plus the cost of PMI expressed as a rate equivalent).
FHA mortgage insurance follows different rules. On most post-2013 FHA loans with less than 10% down, MIP lasts for the life of the loan. Refinancing into a conventional loan is typically the only removal path.
Your servicer is the official source for your specific eligibility. These estimates are illustrative starting points, not guarantees.
Wondering whether paying MI is worth it in the first place? See our guide: Should you avoid mortgage insurance?
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