When Does PMI Go Away? The 80% and 78% Rules Explained

This applies specifically to conventional loan PMI. FHA mortgage insurance premiums (MIP) follow separate rules — often lasting the life of the loan — covered in our FHA MIP removal guide. VA loans don't have monthly mortgage insurance at all.

Since both thresholds are measured against your amortization schedule, anything that reduces your principal balance faster than the schedule moves your cancellation date earlier.

• Extra principal payments. Even modest additional payments compound — the earlier in the loan you add them, the more they accelerate your equity position, since early payments are mostly interest. See how much sooner you'd hit 80% with the Early Mortgage Payoff Calculator.
• A lump sum toward principal. A bonus, tax refund, or inheritance applied directly to principal can jump you past the 80% threshold in one step rather than gradually.
• Requesting cancellation the moment you cross 80% rather than waiting for your servicer to notice — the automatic termination only triggers at 78%, so at 80% the clock doesn't start until you ask.

Can I remove PMI before reaching 80% loan-to-value?

Not under the federal guarantee described here — the 80% threshold is the earliest point you have a legal right to request cancellation. Some servicers may allow earlier removal based on a new appraisal showing increased home value, but that's a lender-specific accommodation, not a federal right.

Does refinancing reset my PMI cancellation timeline?

Yes. If you refinance, "original value" resets to the appraised value at the time of the refinance, and the amortization schedule restarts based on your new loan. A new PMI policy (if required) would follow its own 80%/78% schedule from that point.

What if my home's value has dropped since I bought it?

Your servicer can decline a borrower-requested cancellation at 80% if there's evidence the home's value has fallen below its original value, since that would mean your actual equity position is worse than the loan balance alone suggests. The automatic 78% termination and the loan-midpoint termination aren't subject to this same value check, provided you're current on payments.

Is this the same as FHA mortgage insurance removal?

No. This guide covers private mortgage insurance (PMI) on conventional loans under the Homeowners Protection Act. FHA loans carry a separate mortgage insurance premium (MIP) with different — often less favorable — removal rules, covered in our FHA MIP removal guide.

What's the absolute latest PMI can last on a 30-year loan?

If your balance never reaches 78% of original value on schedule — uncommon, but possible with an interest-only period, principal forbearance, or a balloon structure — federal law still requires termination at the midpoint of your loan's original term: month 181 of a 30-year loan, as long as you're current on payments.