Private mortgage insurance on a home loan has an end date under federal law, and the first date you can ask to cancel it should be on the PMI disclosure form you received with your mortgage. The rules are in the Homeowners Protection Act, 12 U.S.C. § 4902, and CFPB explains them on its PMI removal page.
Cancel on request at 80%
You have the right to ask your servicer to cancel PMI on the date your principal balance is scheduled to fall to 80% of the original value of your home. If extra payments bring the balance to 80% sooner, you can ask sooner. The servicer has to grant the request if you make it in writing, you have a good payment history and are current, you can certify there are no junior liens such as a second mortgage, and you can provide evidence, for example an appraisal, that the property’s value hasn’t declined below the original value.
Automatic termination at 78%
If you don’t ask, the servicer generally must terminate PMI automatically on the date your balance is scheduled to reach 78% of original value, as long as you’re current. If you’re behind on that date, it ends shortly after you’re brought up to date.
Final termination at the midpoint
If PMI hasn’t ended by then, the lender or servicer must end it the month after you reach the midpoint of the loan’s amortization schedule, which is halfway through the original full term, even if the balance hasn’t reached 78%. You have to be current for this to happen.
What original value means
Original value generally means the contract sales price or the appraised value when you bought, whichever is lower. If you’ve refinanced, it’s the appraised value at the refinance.
Unearned premiums
Under 12 U.S.C. § 4902(f), the servicer must return all unearned PMI premiums to you within 45 days after PMI is canceled or terminated under the statute.
Which loans these rules cover
CFPB describes these requirements as applying to mortgages for single-family principal residences that closed on or after July 29, 1999. FHA and VA loans have different requirements, and different rules apply if your lender pays for the mortgage insurance. The statute also carves out loans classed as high risk at closing, which follow their own schedule and end no later than the midpoint if you’re current. Fannie Mae and Freddie Mac often set their own cancellation guidelines, which can’t be less favorable to you than the federal ones.
What I’d do
Find the PMI disclosure form from your closing, note the date on it, and if you’ve been paying extra principal, ask your servicer where your balance stands against the 80% line. Paying PMI and not sure where to start? Ask me. Diana Kim, REALTOR®, eXp Realty.
Questions
Common questions
When can I ask to cancel PMI?
On the date your principal balance is scheduled to fall to 80% of the home's original value, or earlier if extra payments bring it to 80%. The request has to be in writing, and you need a good payment history, current payments, no junior liens, and evidence the value hasn't declined below the original value.
Does PMI end automatically?
Generally yes, on the date your balance is scheduled to reach 78% of original value, if you're current on payments. If you're behind on that date, it ends shortly after you're brought up to date. Either way, it can't continue past the month after the loan's amortization midpoint, as long as you're current.
What is the original value of my home for PMI?
Generally the lower of the contract sales price or the appraised value when you bought. After a refinance, it's the appraised value at the refinance.
Do I get PMI premiums back when it ends?
The servicer must return all unearned premiums within 45 days after PMI is canceled or terminated under 12 U.S.C. § 4902.
Do these rules apply to FHA loans?
No. CFPB says FHA and VA loans have different requirements, and lender-paid mortgage insurance follows different rules too.
Sources
- CFPB, When can I remove private mortgage insurance (PMI) from my loan? (last reviewed Aug 28, 2026): 'Even if you don't ask your servicer to cancel PMI, in general, your servicer must automatically terminate PMI on the date when your principal balance is scheduled to reach 78 percent of the original value of your home. For your PMI to be cancelled on that date, you need to be current on your payments. Otherwise, PMI will not be terminated until shortly after your payments are brought up to date.' Statute: 12 U.S.C. § 4902(b), automatic termination on the 'termination date'.
- CFPB PMI page (en-202), which tracks 12 U.S.C. § 4902(a): 'Your servicer is legally required to grant your request to cancel your PMI as long as you meet the criteria below: You make your request in writing; You have a good payment history and are current on your payments; You can certify that there are no junior liens (such as a second mortgage) on your home; You can provide evidence (for example, an appraisal) that the value of your property hasn't declined below the original value of the home.' 12 U.S.C. § 4902(a)(1) to (4): written request; good payment history; current on payments; any holder requirement for evidence that value has not declined below original value and certification that equity is unencumbered by a subordinate lien.
Written by Diana Yeji Kim — REALTOR® at eXp Realty, serving Greater Boston in English, Korean, and Japanese.
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