Conventional Loan Education
Homeowners Protection Act PMI Cancellation at 80% & 78% LTV Explained
Quick Answer (BLUF): Under the federal Homeowners Protection Act (HPA), borrowers on conventional mortgages with less than 20% down can request Private Mortgage Insurance (PMI) cancellation at 80% LTV and receive automatic termination once scheduled amortization reaches 78% of original value.
Visual Cost & Payment Breakdown · Conventional Mortgage & PMI Guide
Your next move
On most conventional loans for a home you live in, federal law lets you ask to cancel PMI once the balance is scheduled to reach 80 percent of the home's original value, and requires the servicer to end it automatically at 78 percent if you are current. Some servicers also allow removal based on a new appraisal. Refinancing is another route.
Last reviewed against the primary sources listed below.
ToolMilestone estimatorWhen you reach each threshold.StartThe Homeowners Protection ActThe law behind the dates.Stage 1Requesting cancellationAt the 80 percent point.Stage 2Automatic terminationAt the 78 percent point.ShortcutNew appraisal routeWhen value has risen.DetourRefinancing outWhen it makes sense.ToolkitYour letterWhat to put in writing.New guideLender-paid insuranceHow lender-paid mortgage insurance differs from borrower-paid PMI and .New guideImprovements and PMIWhether added value from renovations can count toward canceling PMI.GlossaryKey termsPlain definitions with sources.GuideSecond homesWhy removal rules differ for homes you do not live in.GuideAfter a modificationHow a loan modification can change the PMI removal timeline.PrintableLender questionsQuestions to bring to any lender, ready to print.
Original value matters
The law's thresholds are based on the original value, which is generally the lower of the purchase price or appraised value when you bought. Rising home values help only through the servicer's own appraisal-based policy or a refinance.