Can my lender refuse to cancel PMI once I hit 80% LTV?

They can require conditions first, such as a good payment history and no second liens, and sometimes a new appraisal. But they can't ignore a valid request once you meet the criteria — if they do, you can file a complaint with the CFPB.

Does refinancing automatically remove PMI?

Only if your new loan's balance is 80% or less of the home's current value, or you refinance into a loan type that doesn't require mortgage insurance at all. Refinancing at a higher LTV can mean paying PMI again on the new loan.

Is PMI the same as homeowners insurance?

No. Homeowners insurance protects you and your property. PMI protects the lender if you default, and it's specifically tied to your down payment size, not your home's physical risk.

Private Mortgage Insurance (PMI): How to Get Rid of It Sooner

PMI isn't permanent. Here's exactly when it falls off by law, how to force an early removal, and how much doing so can save you.

If you put down less than 20% on a conventional mortgage, you're probably paying private mortgage insurance (PMI) — and you might be paying it longer than you need to. PMI isn't a lifetime cost. Federal law sets specific points where it has to come off, and in many cases you can push that date up yourself.

What PMI Actually Is

PMI protects the lender, not you, if you default on the loan. Lenders generally require consumers to purchase PMI if their down payment is less than 20 percent of the sales price or the appraised value of the home. It typically costs between roughly 0.2% and 2% of your loan balance per year, tacked onto your monthly payment, and it does nothing for your equity or your credit.

The Two Ways PMI Comes Off — By Law

Under the Homeowners Protection Act, there are two separate thresholds, and the difference matters:

80% LTV — you have to ask. You have the right to ask your servicer to cancel PMI on the date the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This is a request, not automatic. If you don't ask, the servicer isn't required to act at this point.
78% LTV — the lender must act, automatically. The lender must automatically terminate PMI when the balance reaches 78% of the original value (78% LTV), provided you are current on payments. No letter, no phone call needed — but you should still confirm it actually happened.

"Original value" isn't your current home value — it's fixed. For this purpose, "original value" generally means either the contract sales price or the appraised value of your home at the time you purchased it, whichever is lower.

There's also a backstop: The HPA also requires lenders to remove PMI once you reach the halfway mark on your loan term (ex. 15 years on a 30-year loan). That protects borrowers with interest-only periods or other structures where the balance doesn't shrink as fast as a standard amortization schedule.

One catch on both thresholds: you must be current on your monthly payments for termination to occur. If you're behind, the clock resets to the month after you catch up.

How to Push the Date Up

You don't have to wait out the full amortization schedule. Two levers actually move the date:

Extra principal payments. Any payment that reduces your balance faster than the original schedule gets you to 80% sooner. You can ask to cancel PMI ahead of the scheduled date, if you have made additional payments that reduce the principal balance of your mortgage to 80 percent of the original value of your home.
A new appraisal. If your home's value has risen since purchase, you may already be under 80% LTV based on current value, even if you haven't paid down much principal. Your lender or investor guidelines (Fannie Mae/Freddie Mac) will spell out the appraisal process, but note that request-based cancellation using appreciation isn't guaranteed under federal law the way the 78%/80% original-value thresholds are — confirm your lender's specific policy first.

What If You Have an FHA Loan?

FHA loans don't use PMI — they use MIP (mortgage insurance premium), and the removal rules are stricter. Depending on your loan-to-value at origination, MIP can last for the life of the loan rather than dropping off at a set equity threshold. If you're in an FHA loan and want out of mortgage insurance, refinancing into a conventional loan is usually the only path, not a cancellation request.

PMI and Your Taxes

The deductibility of PMI premiums has changed hands in recent tax law. Premiums for PMI are again tax-deductible under H.R.1/the One Big Beautiful Bill — the deduction was phased out after 2021 under prior tax law, but is reinstated for tax year 2026 and beyond. That only helps if you itemize, so run the numbers before assuming it changes your math.

Check This Before You Assume Anything

Pull your original loan documents — you should have received a PMI disclosure at closing showing the projected dates for both the 80% request-eligible date and the 78% automatic termination date. If you can't find it, ask your servicer directly. Don't rely on your loan balance alone; compare it against the amortization schedule, not the current statement.

Getting PMI off your loan a year or two early is a straightforward, guaranteed way to lower a fixed monthly cost — no market timing, no risk. If you're not sure how this fits into the bigger picture of your mortgage, savings, and debt, running a quick check of your financial grade is a fast way to see where this move actually ranks against your other priorities.

Bottom Line

PMI has a legal expiration date, but it's not automatic until 78% LTV, and the 80% request window requires you to raise your hand. Know your numbers, put extra payments toward principal when it makes sense, and follow up with your servicer instead of assuming the system will catch it for you.