How do I remove PMI from a conventional loan?
For many covered loans, you may request PMI removal when the balance reaches 80% of the home’s original value, subject to conditions. Automatic removal generally uses the scheduled 78% point and requires the loan to be current. A rise in home value follows separate rules.
What this actually means.
For many loans covered by federal PMI rules, send your servicer a written request at the scheduled 80% point or after extra principal payments bring the balance to 80% of the original value. You generally need good payment history, current payments, no junior liens, and evidence the value has not fallen. Original value generally means the lower of the purchase price or original appraisal; a refinance uses its appraised value. Automatic termination generally occurs at the scheduled 78% point when current. Current-value cancellation uses separate investor rules, which may include seasoning and valuation requirements. Lender-paid insurance is different. Ask the servicer which rules apply before ordering an appraisal.
What this looks like on a real file.
Where this can move.
Credit score, LTV, coverage percentage, occupancy, and PMI provider can change cost. PMI removal is governed by HPA and servicer policy.
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More conventional questions on PMI.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.