When does PMI go away? The 80% / 78% LTV rules
Federal law sets two conventional-PMI thresholds — 80% LTV to request cancellation, 78% automatic — both measured against original value, not today's estimate.
Private mortgage insurance generally protects the lender, not the homeowner, against borrower default. The Homeowners Protection Act created cancellation and termination rights for many conventional residential mortgages, but it does not turn every insurance charge labeled on a statement into the same product.
Do not order an appraisal or stop paying a premium before the servicer explains its process. FHA mortgage insurance, lender-paid mortgage insurance, high-risk loans, investment-property rules, and investor-specific current-value requests can differ.
The short answer
Find the loan type, original property value, current principal balance, payment history, and PMI disclosure. For eligible conventional borrower-paid PMI, federal law provides request and automatic-termination paths tied to the original value; other loan types and early cancellation based on current value can follow different rules.
Identify the loan and insurance type
Review the Closing Disclosure, promissory note, mortgage-insurance disclosure, and statement. Determine whether the loan is conventional, FHA, VA, USDA, or another program and whether the charge is borrower-paid PMI, lender-paid insurance reflected in pricing, or a program mortgage-insurance premium.
Find original value and current principal balance
For covered conventional loans, the Homeowners Protection Act sets two loan-to-value thresholds measured against the home's original value: you can request cancellation once the balance reaches 80% of that original value, and the servicer must automatically terminate PMI at 78%, or at the midpoint of the loan's amortization schedule if that comes first — as long as payments are current. Neither threshold uses today's online value estimate. Ask the servicer which schedule applies and request the cancellation date in writing if it is missing.
Check payment and property conditions
A borrower-request path can require a written request, a good payment history, current payments, no subordinate liens, and evidence that the property's value has not declined. Requirements and permitted valuation methods should come from the servicer in writing.
Ask separately about current-value cancellation
Some conventional loans may allow earlier removal based on current value under investor guidelines, often with seasoning, loan-to-value, improvement, and valuation requirements. That path is not the same as the statutory original-value schedule and may require a paid valuation.
Confirm the effective date and statement change
Submit documents through the servicer's designated process, keep proof, and confirm when premiums will stop. Review subsequent statements and ask about any unearned-premium treatment. Do not treat a rising home estimate as confirmation that PMI has ended.
Put the guide to work
Field notes
- Pull
- Loan type, PMI disclosure, original value, balance, amortization schedule, and payment history.
- Ask in writing
- Which cancellation path applies, what valuation is accepted, what it costs, and what date controls?
- Do not assume
- FHA mortgage insurance and lender-paid arrangements follow the conventional PMI cancellation schedule.
- Verify after
- Check statements after approval and retain the servicer's confirmation.
Common questions
Frequently asked questions
- When does PMI go away on a conventional loan?
- You can request cancellation once your balance reaches 80% of the home's original value, with a good payment history and no subordinate liens. If you don't ask, the servicer must terminate it automatically at 78% of original value — or at the midpoint of your amortization schedule, whichever comes first — as long as you're current on payments.
- Is PMI based on the purchase price or today's value?
- The statutory cancellation and automatic-termination thresholds use the home's original value (generally the lesser of the purchase price or the appraised value at closing), not a current market estimate. Some conventional loans separately allow earlier removal based on today's value under investor guidelines, but that's a different, optional path with its own appraisal and seasoning requirements — ask your servicer which one applies.
- When does FHA mortgage insurance go away?
- FHA loans don't follow the conventional PMI schedule. For FHA case numbers assigned on or after June 3, 2013, annual mortgage insurance premiums stay for the life of the loan if the original loan-to-value was above 90%, or for 11 years if it was 90% or below. Refinancing out of the FHA loan is the usual way to end it early.
Make the next step useful
Put this guide on your home plan
Know when to call a professional. Stop if work involves active gas leaks, damaged service wiring, structural movement, unsafe heights, suspected contamination, or a problem you cannot confidently isolate.
Editorial review and sources
Reviewed by: Smart Homeowners Editorial Desk
Last reviewed: August 26, 2026
Original Smart Homeowners editorial; not adapted from a third-party article.