PMI

How do I remove PMI from a conventional loan?

Short answer

Two main paths: 1) automatic cancellation at 78% LTV based on the original loan schedule; 2) borrower-requested cancellation at 80% LTV based on either original value or current appraised value. A new appraisal showing 80%+ equity (commonly after 2-5 years) can accelerate removal. Subject to servicer rules.

Plain-English explanation

Federal Homeowners Protection Act (HPA) requires automatic PMI termination at 78% LTV based on the original amortization schedule, provided the loan is current. Borrower-requested cancellation is available at 80% LTV — by paying down principal, by improved property value (appraisal), or by some combination. The servicer reviews the request and typically requires no late payments in the prior 12 months. Lender-paid PMI (LPMI) cannot be canceled. Subject to servicer policy and HPA.

Practical example

A Florida buyer purchases at $400k with 10% down ($360k loan, 90% LTV). After paying down to $320k principal (80% of original $400k value) — typically 4-6 years on a 30-year loan — they request PMI cancellation. The servicer confirms current-payment history and removes PMI. If property values rose to $475k by then, an appraisal-based request can hit 80% LTV faster.