Updated July 2026 · 9-minute read · Reviewed by a licensed loan officer
If you're paying private mortgage insurance (PMI), you're likely spending an extra $100-$300 per month. The good news: you don't always need to refinance to get rid of it. This shows how to remove PMI without refinancing, and save thousands over the life of your loan.
Private mortgage insurance (PMI) protects your lender if you default on your loan. It's required when you put down less than 20% on a conventional mortgage. PMI typically costs 0.15-2% of your loan amount per year, paid monthly.
You bought a $400,000 home with 10% down ($40,000). Your loan is $360,000. Your PMI rate is 0.75% annually.
Removing PMI saves you $2,700/year, that's a car payment, a vacation, or extra retirement savings.
Under the Homeowners Protection Act (HPA), you can request PMI cancellation once your loan-to-value (LTV) ratio reaches 80%, meaning you have 20% equity in your home.
LTV = (Loan balance ÷ Home value) × 100
Example: Your loan balance is $320,000. Your home is worth $400,000. Your LTV is 80%, you can request PMI cancellation.
Under the HPA, your lender must automatically cancel PMI when your LTV reaches 78%, based on the original amortization schedule (not current home value).
If you've been making your regular monthly payments, your loan balance will eventually drop to 78% of the original home value. At that point, your lender must cancel PMI automatically, no appraisal required.
You bought a $400,000 home with 10% down ($40,000). Your original loan was $360,000. Your lender will automatically cancel PMI when your loan balance drops to $313,200 (78% of $400,000).
If you can't wait that long, use Method #1 to request early cancellation.
If you're close to 80% LTV but not quite there, making extra principal payments can help you reach the threshold faster.
Every extra dollar you pay toward principal reduces your loan balance, which lowers your LTV. Once you hit 80% LTV, you can request PMI cancellation.
Your loan balance is $325,000. Your home is worth $400,000. Your LTV is 81.25%, just above the 80% threshold. You need to pay down $5,000 to reach 80% LTV.
You spend $5,000 now but save $2,700/year, a 54% return on your investment in the first year alone.
If your home's value has increased since you bought it, your LTV may have dropped below 80%, even if your loan balance hasn't changed much.
LTV = (Loan balance ÷ Home value) × 100
If your home's value increases, your LTV decreases, even if your loan balance stays the same.
You bought a $400,000 home with 10% down ($40,000). Your loan is $360,000. Three years later, your home is worth $500,000. Your LTV is now 72%, well below 80%. You can request PMI cancellation.
Your lender will require proof that your home's value has increased. Options include:
Most lenders require a professional appraisal for PMI cancellation. The cost ($400-$800) is quickly recouped through PMI savings.
If you've made significant home improvements, your home's value may have increased enough to drop your LTV below 80%.
You bought a $400,000 home with 10% down. Your loan is $360,000. You spent $30,000 on a kitchen remodel, which increased your home's value by $25,000. Your home is now worth $425,000. Your LTV is 84.7%, still above 80%, but closer. Make a few extra principal payments to reach 80%.
Sometimes, refinancing is the better option, especially if:
You have a $360,000 loan at 6.75% with 25 years remaining. Your home is worth $450,000. Your LTV is 80%.
Result: If you plan to stay in the home for 3+ years, refinancing saves you more. If you plan to sell sooner, PMI cancellation is better.
It's more difficult. Most lenders won't cancel PMI if you have a second mortgage or HELOC, because the combined loan-to-value (CLTV) is higher. You'll need to pay down both loans or refinance them into a single mortgage to remove PMI.
Once you request cancellation and provide the required documentation (appraisal, etc.), it typically takes 30-60 days for the lender to process your request and cancel PMI. Your next statement should show the PMI removal.
No. PMI cancellation is prospective, it stops future payments, but you don't get a refund for past payments. That's why it's important to remove PMI as soon as you qualify.
It depends. If you put down less than 10%, FHA mortgage insurance (MIP) lasts the entire life of the loan, you can't remove it. If you put down 10% or more, MIP cancels after 11 years. The only way to remove FHA MIP early is to refinance to a conventional loan.
If you meet the requirements (80% LTV, good payment history, no subordinate liens) and your lender refuses to cancel PMI, file a complaint with the Consumer Financial Protection Bureau (CFPB). Under the HPA, lenders are required to cancel PMI when you qualify.
You can remove PMI without refinancing by: (1) requesting cancellation at 80% LTV, (2) waiting for automatic cancellation at 78% LTV, (3) making extra principal payments, (4) benefiting from home value appreciation, or (5) making home improvements that add value. The fastest method is usually a combination of extra payments and an appraisal to prove your home's value.
Use our mortgage calculator to estimate your LTV and see how much you'll save by removing PMI.