Can I refinance to remove conventional PMI?
Yes. If property value has risen enough that the new appraisal shows 80%+ equity, refinancing into a new conventional loan eliminates PMI from day one. Rate has to be reasonable — sometimes the higher new rate offsets the PMI savings, sometimes it doesn't.
What this actually means.
PMI-removal refinance is most common when home values rise after purchase. The math: new rate vs old rate + old PMI + closing costs. If the appreciation is real and PMI savings outweigh any rate increase plus closing costs, the refi pays off. Borrowers can also wait for the servicer's automatic PMI termination, which is generally tied to 78% of original value on the original amortization schedule and is subject to servicer rules, payment history, and HPA — that path costs nothing if you can wait. The refi makes sense when waiting takes too long or when rate also improves.
Where this can move.
Rate environment, equity, credit, current loan type, seasoning, AUS findings (appraisal waiver eligibility), and program rules can change the answer.
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More conventional questions on Refinance.
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.