PMI Guide

Is PMI Automatically Canceled?

Yes — on most conventional loans, private mortgage insurance must be automatically terminated by the servicer once the loan reaches 78% of the original property value, as long as you are current on payments.

Get Pre-Approved Conventional Overview

How Automatic PMI Termination Works

Federal rules set a hard stop for many conventional PMI policies once equity reaches the required level.

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))}

What Automatic Cancelation Does Not Cover

A few situations still need a borrower request or a different strategy.

  • Lender-paid PMI may not cancel the same way as borrower-paid PMI
  • Some older or specialty products may follow investor overlays
  • High-risk loans can have different timing under the statute
  • Appraisal-based early removal for appreciation is still a request process
  • FHA MIP follows a completely separate set of rules

Checklist Before the 78% Date

A little prep prevents PMI from lingering after it should be gone.

  • Confirm original appraised/purchase value on your closing docs
  • Track unpaid principal balance each month
  • Stay current — late payments can block automatic termination
  • Note the projected 78% date from your amortization schedule
  • Call the servicer if PMI still appears after that date

Faster Than Waiting for Automatic Cancelation

If cash flow matters now, do not wait for 78% if you already qualify to request removal.

{[ ["Check 80% first", "If you are already near 80% LTV, request cancellation instead of waiting for automatic termination."], ["Consider an appraisal", "Market appreciation may support earlier removal under servicer guidelines."], ["Prepay principal", "Extra payments can pull both the 80% and 78% dates forward."], ["Refinance strategically", "A refinance at or below 80% LTV can drop PMI immediately in the new loan."] ].map(([t, d], i) => (

Step {i + 1}

))}

Keep Exploring

Related guides to help you compare options and move toward pre-approval.

When Can PMI Be Removed?

Borrower-requested cancellation at 80% LTV.

Do Conventional Loans Require PMI?

When PMI applies and what it costs.

How Much Down Payment Is Required?

How down payment affects PMI from day one.

Get Started

Ask Ryan or Steve to review your PMI timeline.

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Related Blog Posts

Recent articles from our blog on conventional loans, credit, and homebuying.

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Frequently Asked Questions

Confirm When Your PMI Should Automatically End

Share your original purchase price and current balance — we will estimate your automatic cancelation date and whether you can request removal sooner.

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(765) 450-8933 Get Started