Mortgage insurance and how to remove it
Most conventional loans with less than 20% down carry private mortgage insurance (PMI). Federal law lets you ask to cancel it when your balance is scheduled to reach 80% of the home's original value, and requires the servicer to end it automatically at 78%.
Your rights on conventional loans
- Ask in writing to cancel when the balance reaches 80% of the original value, if you are current, have no junior liens and the value has not dropped.
- Automatic termination when the balance is scheduled to reach 78% of the original value, if you are current.
- PMI must also end the month after you reach the midpoint of the loan term, for example year 15 of a 30 year loan.
FHA and VA
- FHA loans carry their own mortgage insurance premium with different rules. Ask your servicer how long yours lasts.
- VA loans have no monthly mortgage insurance. Most borrowers pay a one time funding fee instead.
- Refinancing an FHA loan into a conventional loan is one way some owners drop FHA mortgage insurance.
Questions people ask
- Can extra payments help me drop PMI sooner?
- Yes. If extra payments bring the balance to 80% of the original value early, you can ask to cancel then.
- Can a higher home value get PMI removed?
- Some lenders allow it based on a new appraisal. The federal right to cancel is based on the original value, so ask your servicer about its own policy.
- Is PMI the same as homeowners insurance?
- No. PMI protects the lender if you stop paying. Homeowners insurance protects you and the home.
Official sources
- CFPB, When can I remove PMI? ↗
- VA, Funding fee and closing costs ↗
- CFPB, Understand the different kinds of loans ↗
Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.