PMI Exit Plan glossary
Key terms
Your next move
These terms come up when removing private mortgage insurance, each with a primary source.
Last reviewed against the primary sources listed below.
- Borrower-requested cancellation
- Your written request to end PMI once your balance reaches the federal threshold based on original value. Source: CFPB: When can I remove private mortgage insurance from my loan?
- Automatic termination
- The federal rule that ends PMI at a set balance threshold if you are current on payments. Source: CFPB: When can I remove private mortgage insurance from my loan?
- Original value
- The lower of the purchase price or appraised value when you got the loan. Source: CFPB: When can I remove private mortgage insurance from my loan?
- Lender-paid mortgage insurance
- Mortgage insurance paid by the lender and recovered through a higher rate. Source: CFPB: What is private mortgage insurance?