Quick answer: Under the federal Homeowners Protection Act, you can ask in writing to remove PMI once you owe 80% of the home's original value (80% loan-to-value). Your payments must be current, and your servicer may also require that there is no second loan on the home. Your servicer must drop it automatically at 78% if you're current. The faster route when home values rise is a new appraisal. If Fannie Mae or Freddie Mac owns your loan on a one-unit home you live in, the servicer can cancel it at 75% of current value after 2 years, or 80% after 5. You also have to meet its payment-history rules. On most conventional loans with borrower-paid PMI, you do not need to refinance.
PMI has a legal off-switch. Some homeowners never use 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 if your loan is current, and no later than the loan's midpoint either way.
- Appraisal route: on Fannie Mae and Freddie Mac loans on a one-unit home you live in, 75% of current value after 2 years, or 80% after 5. Rental and 2-4 unit properties have stricter bars. Rising home values do the work instead of your payments.
- LPMI can't be canceled. It is built into your rate, so 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 the loan's midpoint | Nothing, but don't wait for it |
| Current-value appraisal | 75% of today's value after 2 years, 80% after 5 (Fannie Mae and Freddie Mac loans, one-unit home you live in) | Order a servicer-approved appraisal (about $500 to $600) |
Do you have to refinance to get rid of PMI?
No, not on most conventional loans. If you pay the PMI yourself (borrower-paid PMI, the most common kind), federal law gives you two ways out with no refinance. You can ask your loan servicer, the company you send your payment to, to cancel it once you owe 80% of the home's original value and your payment history is clean. Or you can wait, and if you are current it ends on its own at 78%. If Fannie Mae or Freddie Mac owns your loan on a one-unit home you live in, a new appraisal can also get you there sooner if you meet its payment-history rules.
A refinance is the way out in three cases:
- Lender-paid mortgage insurance (LPMI): the cost is built into your interest rate, so it ends only when the loan is paid off or replaced.
- An FHA loan with less than 10% down: MIP (the mortgage insurance premium FHA charges) lasts for the life of the loan when the FHA case number was assigned on or after June 3, 2013. Refinancing into a conventional loan is the usual exit.
- You also want a lower rate: if today's rates beat yours and your new loan is 80% or less of the home's current value, one refinance can drop the PMI and the rate together. Weigh the closing costs against what you would save.
Before you pay for a refinance just to drop PMI, ask your servicer for its PMI cancellation rules in writing. Asking is free, though your servicer may require an appraisal, which costs about $500 to $600. A refinance comes with closing costs.
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 it will 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 ordered on your own 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): built into your rate for the life of the loan, so the exit is a refinance.
- FHA loans: different rules entirely. With under 10% down, MIP 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
Do I have to refinance to get rid of PMI?
Usually not. With borrower-paid PMI on a conventional loan, you can ask your servicer to cancel it at 80% of the original value if your payments are current (your servicer may also require that there is no second loan on the home). If you are current, it also ends on its own at 78%. A refinance is the exit for lender-paid MI, for FHA loans with lifetime MIP, or when you also want a lower rate.
When can I remove PMI?
Request it at 80% LTV of original value; it must drop automatically at 78% if you're current. On Fannie Mae and Freddie Mac loans on a one-unit home you live in, you can also cancel with a new appraisal: 75% of current value after 2 years, or 80% after 5. You must also meet the payment-history rules.
Does PMI ever drop off on its own?
Yes. If you are current, it ends at 78% LTV on the original amortization schedule (the payment plan your loan started with), 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 and with an appraisal it orders or approves. On Fannie Mae and Freddie Mac loans on a one-unit home you live in, the bar is 75% of current value after 2 years, or 80% after 5. Rental and 2-4 unit properties have stricter bars.
What blocks a cancellation request?
Late payments in the last 12 to 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
On most conventional loans with borrower-paid PMI, PMI is meant to be temporary, and federal law gives you a way out. 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
- Freddie Mac Single-Family Seller/Servicer Guide, Section 8203.2(b), borrower-requested cancelation of borrower-paid mortgage insurance based on current value: guide.freddiemac.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: October 1, 2026. We added a direct answer on refinancing to drop PMI and corrected the appraisal route to the Fannie Mae and Freddie Mac rules. Fully rewritten July 17, 2026 from the 2015 original; HPA rights, current-value appraisal route, and worked LTV math added; sourced to CFPB and Fannie Mae.
