Your roadmap to dropping private mortgage insurance
Stage 1: ask for it
Your next move
You can ask your servicer in writing to cancel PMI when your principal balance reaches 80 percent of the original value, either by schedule or because you paid extra. You must have a good payment history, be current, and may need to show the value has not declined and that there are no other liens on the home.
Last reviewed against the primary sources listed below.
Conditions
- Request in writing.
- Good payment history and current on payments.
- Proof, if asked, that the value has not declined below original value.
- No subordinate liens, such as a second mortgage, if the servicer requires it.
Getting there sooner
Extra principal payments lower the balance faster, so you reach the request point earlier. The estimator shows the target balance.
PMI questions on the road
What is the fastest way to get rid of PMI?
Pay down principal to the 80 percent point and request cancellation, or, if your servicer allows it and value has risen, request removal based on a new appraisal.
Is it worth removing PMI from a mortgage?
Usually yes, once eligible, because it lowers the monthly payment with no loss of coverage for you; PMI protects the lender.