Quick answer: Under the federal Homeowners Protection Act you can remove PMI by written request at 80% loan-to-value (original value), and your servicer must drop it automatically at 78% if you're current. The faster route in an appreciating market: a new appraisal — most servicers cancel at 75–80% of current value with a couple of years of seasoning.
PMI has a legal off-switch — most homeowners just never flip it. Here are the three removal paths, the exact requirements for each, and the appraisal math that gets Las Vegas homeowners out years early.
Key takeaways
- Request at 80% LTV (original value): written request + clean payment history + no junior liens. Federal right under the Homeowners Protection Act.
- Automatic at 78% on the original schedule (loan current) — and no later than the loan's midpoint regardless.
- Appraisal route: most servicers cancel at 75–80% of current value with ~2–5 years seasoning — appreciation does the work instead of your payments.
- LPMI can't be canceled — it lives in your rate; the exit is a refinance. (FHA loans follow different rules — see our MIP removal guide.)
Three ways to remove PMI
| Path | Trigger | What you do |
|---|---|---|
| Borrower request | 80% LTV, original value | Written request + payment history check |
| Automatic termination | 78% LTV on original schedule (loan current) — or loan midpoint | Nothing — but don't wait for it |
| Current-value appraisal | ~75–80% of today's value, ~2–5 yrs seasoning | Order servicer-approved appraisal (~$500–$600) |
When can you request PMI cancellation?
- LTV at or below 80% of the original value (purchase price or original appraisal, whichever governs your loan)
- Payment history: no 30-day lates in the past 12 months, no 60-day lates in the past 24
- Current on the loan, and no junior liens (a HELOC can block cancellation)
- Possibly evidence value hasn't declined — the servicer tells you what they'll accept
You can reach 80% faster by making extra principal payments — even one lump payment to cross the line can justify the request letter the same month.
The appraisal play: let appreciation do the work
Bought at $400,000 in 2023 with 10% down ($360,000 loan). Balance today ≈ $342,000.
Original-value LTV: $342,000 ÷ $400,000 = 85.5% — not there yet
If the home appraises at $460,000: $342,000 ÷ $460,000 = 74.3% — under the 75% current-value bar
A ~$550 appraisal vs. PMI at, say, $150/month: the appraisal pays for itself in under four months, then saves $1,800/year.
Valley West takeCall your servicer first, appraiser second. Servicers only accept appraisals they order or approve — a $550 appraisal you commissioned yourself is usually worthless to them. Ask for their PMI-deletion requirements in writing, follow their process exactly, and if they stonewall past the HPA thresholds, that's a complaint to the CFPB. And if your rate is also above market, compare the appraisal route against a straight refinance — sometimes one move solves both. The refinance side of that decision is mapped in the conventional loan path in Las Vegas.
When can PMI not be canceled?
- LPMI (lender-paid MI): baked into your rate permanently — the exit is a refinance.
- FHA loans: different rules entirely — MIP with under 10% down lasts the life of the loan; see the FHA MIP removal guide.
- Recent lates or a junior lien: fix the history or subordination issue first, then request.
Paying PMI you might not owe?
We'll estimate your current LTV against Las Vegas comps, tell you which removal path fits, and check whether a refinance beats them all. No obligation.
Get your fast quotePMI removal FAQ
When can I remove PMI?
Request it at 80% LTV of original value; it must drop automatically at 78% if you're current. Many servicers also cancel at 75–80% of current value with a new appraisal and ~2–5 years of seasoning.
Does PMI ever drop off on its own?
Yes — at 78% LTV on the original amortization schedule, and no later than the loan's midpoint. But waiting for automatic termination usually costs you months of unnecessary premiums.
Can I use a new appraisal?
Usually — through your servicer's process, with an appraisal they order or approve. Typical bar: 75–80% of current value depending on seasoning.
What blocks a cancellation request?
Late payments in the last 12–24 months, a junior lien like a HELOC, or a value decline. Fix the blocker, then re-request.
Can LPMI be canceled?
No — lender-paid MI is priced into your rate for the life of the loan. The exit is a refinance.
The bottom line
PMI is supposed to be temporary — federal law guarantees it. Know your two numbers (balance and value), pick the cheapest path across the line, and put the request in writing the month you qualify. In a market that's appreciated like Las Vegas, the appraisal route gets most people out years before the amortization schedule would.
Sources
- CFPB — When can I remove private mortgage insurance (PMI) from my loan: consumerfinance.gov
- Homeowners Protection Act of 1998 (12 U.S.C. §4901 et seq.) — cancellation and automatic-termination rights: congress.gov
- Fannie Mae Servicing Guide — B-8.1-04, Termination of Conventional Mortgage Insurance: servicing-guide.fanniemae.com
Across Valley West: If a conventional refinance is the road out of PMI, our conventional loan site is built for exactly that.
Keep reading
Last updated: July 17, 2026 — fully rewritten from the 2015 original; HPA rights, current-value appraisal route, and worked LTV math added; sourced to CFPB and Fannie Mae.
