Down Payment & Assistance
What is PMI and when can I remove it?
Updated Jul 1, 2026
The short answer
Private mortgage insurance (PMI) protects the lender, not you, and is typically required on conventional loans when you put down less than 20%. Under the federal Homeowners Protection Act, you can request PMI cancellation once your loan balance reaches 80% of the home’s original value, and the lender must automatically terminate it at 78%. This makes PMI a temporary cost, not a permanent one.
Key points
- PMI protects the lender when down payment is under 20%.
- You can request cancellation at 80% loan-to-value.
- Automatic termination is required at 78% LTV.
- FHA mortgage insurance follows different rules.
Conventional PMI vs. FHA insurance
The 80/78% cancellation rules apply to conventional PMI. FHA loans carry a mortgage insurance premium that, for many current loans, lasts the life of the loan unless you refinance out of FHA, so the programs are not equivalent.
Common questions
- Does PMI ever go away on its own?
- On conventional loans, yes — lenders must automatically end PMI when your balance reaches 78% of the original value, provided you are current on payments.
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Sources
Every claim above traces to a public government source.