Your roadmap to dropping private mortgage insurance
Your road out of PMI
Your next move
On most conventional loans for a home you live in, federal law lets you ask to cancel PMI once the balance is scheduled to reach 80 percent of the home's original value, and requires the servicer to end it automatically at 78 percent if you are current. Some servicers also allow removal based on a new appraisal. Refinancing is another route.
Last reviewed against the primary sources listed below.
ToolMilestone estimatorWhen you reach each threshold.StartThe Homeowners Protection ActThe law behind the dates.Stage 1Requesting cancellationAt the 80 percent point.Stage 2Automatic terminationAt the 78 percent point.ShortcutNew appraisal routeWhen value has risen.DetourRefinancing outWhen it makes sense.ToolkitYour letterWhat to put in writing.
Original value matters
The law's thresholds are based on the original value, which is generally the lower of the purchase price or appraised value when you bought. Rising home values help only through the servicer's own appraisal-based policy or a refinance.