When Can You Drop PMI? Rules + Exact Dates (2026)

Private mortgage insurance (PMI) doesn't come off when you ask nicely. It comes off when your loan crosses one of three thresholds defined by federal law — the Homeowners Protection Act of 1998 (HPA), codified at 12 U.S.C. §§ 4901–4910. Knowing the thresholds — and which one fires first for your loan — is the difference between paying PMI for two more years or being done with it next month.

This guide walks through all three, with the dollar mechanics and the documentation your servicer will require for each. If you want the exact month your loan crosses each threshold, plug your numbers into the PMI removal calculator — it computes all three dates from the loan amount, rate, term, and home value.

The three thresholds

Threshold	LTV at trigger	Who fires it	Documentation needed
Borrower-requested cancellation	80% of original property value	You, in writing	Servicer-approved BPO or appraisal if home value changed
Automatic termination	78% of original property value	Servicer (mandatory)	None — happens on the date the loan amortizes to 78% LTV based on the original schedule
Final termination (midpoint)	n/a	Servicer (mandatory)	Triggered at the midpoint of the amortization schedule even if 78% hasn't been reached

The thresholds are calculated against the original property value — the lesser of the purchase price or the appraised value at closing — not today's market value. This is the most-misunderstood point and the one that trips up homeowners who think rising home prices entitle them to drop PMI earlier than the amortization schedule says. They don't, unless the borrower-requested path is used.

Threshold 1: 80% LTV by borrower request

Once the loan balance hits 80% of the original property value, you have a legal right under HPA §4902(a) to request PMI cancellation. The servicer must comply if:

You're current on the mortgage (no payments 30+ days late in the prior 12 months, no 60+ day lates in the prior 24 months).
There are no junior liens on the property, or junior liens that bring combined LTV above 80%.
You can certify, when the servicer asks, that the home value hasn't dropped below the original property value.

The request must be in writing. The servicer typically responds within 30 days. If they require an appraisal to verify property value, they pay for it — but they can require a Broker Price Opinion (BPO) at your expense if the home is in a soft market.

Important nuance: if your home has appreciated enough that the current value, not the original, drops your LTV to 80%, some lenders will accept a current appraisal to fast-track cancellation. This is lender-discretionary, not a HPA right. Chase, Wells Fargo, and most large servicers have written procedures for this; smaller servicers may push back. Ask before paying for the appraisal.

Threshold 2: 78% LTV automatic termination

This is the trigger no one needs to ask for. HPA §4902(b) requires servicers to automatically terminate PMI on the date the loan balance reaches 78% of the original property value, based on the original amortization schedule — regardless of actual payments.

Two consequences of "based on the original amortization schedule":

If you've been paying extra principal, your loan balance is below 78% earlier than the original schedule said. Automatic termination still uses the original schedule date. The extra principal doesn't fast-track automatic — you'd have to use the borrower-request path for that.
If you've been delinquent, the loan balance is above what the schedule predicts. Automatic termination is delayed until the loan is current and the actual balance reaches 78%, per HPA §4902(c).

To find your automatic-termination date without doing the math by hand: divide your original loan amount by the original property value to get starting LTV, then look up the month your scheduled balance hits 78% on the amortization table for your rate and term. Or use the PMI removal calculator, which surfaces this date directly.

Threshold 3: Final termination at the loan midpoint

A backstop for the small number of loans where 78% never naturally arrives — most notably 100% LTV loans where the homeowner pays only the scheduled monthly payment for years and inflation hasn't done anything for them.

HPA §4902(b)(2) requires PMI to terminate at the midpoint of the original amortization period, even if the 78% threshold hasn't been hit, as long as the borrower is current. For a 30-year loan, that's month 180. For a 15-year, month 90.

In practice this rule only fires for loans originated with very high LTVs and unfavorable amortization, which is rare on conventional loans (FHA loans have their own MIP rules, covered separately below).

What about FHA, VA, and USDA loans?

The Homeowners Protection Act covers conventional loans only. Government-backed loans run on their own rules:

FHA charges Mortgage Insurance Premium (MIP), not PMI. For loans originated after June 3, 2013, with under 10% down, MIP is permanent for the life of the loan. The only way out is to refinance into a conventional loan once your equity supports it. Loans with 10%+ down drop MIP at year 11.
VA loans don't have ongoing mortgage insurance, only the one-time VA funding fee at closing. Nothing to cancel.
USDA loans charge an annual guarantee fee that runs for the life of the loan. Same as FHA: refinance to escape.

If you have an FHA loan and want to drop MIP, the refinance threshold is roughly 20% equity at current home value plus enough monthly savings to justify the closing costs. Run the numbers against the PMI removal calculator and the auto loan refinance calculator format applied to your mortgage to compare.

How to actually request cancellation (the 80% path)

The script that works at most large servicers:

Pull your most recent mortgage statement. Note the principal balance.
Compute current LTV against your original property value (the value on your closing disclosure, not Zillow). If it's at or under 80%, you qualify under HPA.
Write the request. A single page is enough. Include: loan number, property address, current balance, original property value, statement that no junior liens exist and you're current on payments, and an explicit request to cancel PMI per HPA §4902(a). Send certified mail or via the servicer's secure-message portal.
Watch the 30-day clock. Servicer must respond. If they want an appraisal, ask whether they're paying (they generally do unless the home is in a soft market).
Confirm in writing. Get the cancellation confirmation letter and check the next statement to verify PMI is no longer being collected.

If the servicer drags past 30 days without a substantive response, the next escalation is a written complaint to the Consumer Financial Protection Bureau. HPA violations are a CFPB enforcement priority.

Common edge cases

Refinanced loan. PMI on the new loan resets against the new loan's original property value, not the original purchase. A refinance often pushes the automatic-termination date significantly later.
Second appraisal that comes in low. If you commission an appraisal hoping to use the appreciation path and it comes in below the original property value, you're stuck — the lender will refuse cancellation and may require continued PMI even at the 80% original-value mark, citing the new lower value.
Substantial improvements. Major capital improvements (additions, full kitchen remodels) that materially increase property value can support an appreciation-path appraisal. Cosmetic refreshes do not.
Lender-paid PMI (LPMI). If your loan has LPMI rather than borrower-paid PMI, you can't cancel — the cost was baked into the interest rate at origination. Only refinancing removes it.

FAQ

Will my servicer automatically cancel PMI when I hit 80% LTV?

No. Automatic cancellation kicks in at 78%, not 80%. The 80% threshold is borrower-requested only — you have to send the written request.

Can extra principal payments speed up automatic cancellation?

No. Automatic cancellation uses the original amortization schedule, not the actual balance. Extra payments help you qualify for borrower-requested cancellation at 80% sooner, but you still have to ask.

What if my home value has dropped?

Borrower-requested cancellation requires you to certify the home is worth at least the original property value. If it's not, the request will be denied. Wait for the automatic threshold or for the home value to recover.

Does a recast change my PMI cancellation date?

Sometimes. A recast lowers the loan balance — if the new balance is below 80% of original property value, you can immediately request cancellation under HPA §4902(a). The automatic 78% date doesn't change because it's tied to the original amortization schedule.

What if I'm delinquent?

PMI cancellation, automatic or requested, requires you to be current on the mortgage. Delinquency delays both paths until the loan is current and re-evaluated.

How long does the servicer have to respond?

30 days under HPA. If they require an appraisal, the clock pauses until the appraisal is returned. Total elapsed time is usually 45–60 days end-to-end.

Is PMI tax-deductible?

It was, intermittently, depending on the tax year and Congressional renewal. As of the 2025 tax year (filed in 2026) the PMI deduction is not available — it expired with the 2021 tax year and Congress hasn't restored it. Check the IRS website for the current year's status.