What is PMI and when does it go away?
Private mortgage insurance protects the lender on conventional loans above 80% loan-to-value. You can generally request cancellation at 80% and, on a primary residence, it must generally be terminated when the scheduled balance reaches 78% of the original value.
PMI · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
PMI is priced as an annual percentage of the loan amount and collected monthly. The factor depends on loan-to-value, credit score, loan term and coverage, so two borrowers buying the same house can pay very different premiums.
Cancellation at 80% loan-to-value is a request you make; automatic termination at 78% is based on the original amortization schedule, not on market appreciation. Some lenders will consider a new appraisal to recognize appreciation, subject to their rules and investor guidelines.
PMI is not the same as FHA mortgage insurance, which follows HUD rules instead.
See it with your own numbers
Still unsure? Ask a question or browse every FAQ.
Keep going
Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.