On a conventional loan, you can ask your servicer in writing to cancel PMI once your loan balance reaches 80% of your home's original value. PMI must end on its own when your balance is scheduled to reach 78%. If your home has gone up in value, Fannie Mae loans can also drop PMI based on today's value: 75% or less after two to five years, or 80% or less after five years. FHA is different. FHA's yearly mortgage insurance ends after 11 years if you put down 10% or more. If you put down less, it lasts for the life of the loan unless you refinance.
Private mortgage insurance (PMI) is a monthly cost on many conventional loans with less than 20% down. It protects the lender, not you. The good news: on conventional loans, it does not last forever.
| Way | When | What you do |
|---|---|---|
| You ask | Your balance reaches 80% of the original value | Ask in writing. You need a good payment record and no second mortgage. |
| Automatic | Your balance is scheduled to reach 78% of the original value | Nothing, as long as you are current on payments |
| Halfway point | You reach the middle of your loan term (15 years on a 30-year loan) | Nothing, as long as you are current |
"Original value" usually means the price you paid or the appraised value when you bought, whichever is lower. These rules apply to most loans on a main home that closed on or after July 29, 1999.
Extra payments toward your principal can get you there sooner.
Lenders and investors can have their own, faster rules. For loans owned by Fannie Mae on a one-unit home you live in (or a second home), you can ask to drop PMI based on today's value if:
You will usually need a new value check, and a clean payment record. Ask your servicer which rules apply to your loan.
| Your FHA down payment | How long the yearly fee lasts |
|---|---|
| 10% or more | 11 years |
| Less than 10% | The life of the loan |
Many FHA owners drop their mortgage insurance by refinancing into a conventional loan once they have enough equity.
VA loans do not have monthly mortgage insurance. Most VA buyers pay a one-time funding fee instead. See how VA loans work in Middle Tennessee.
You can ask your servicer in writing to cancel PMI when your loan balance reaches 80% of your home's original value. You need a good payment record and no second mortgage on the home.
PMI must end automatically when your balance is scheduled to reach 78% of your home's original value, as long as you are current on payments. It also ends at the halfway point of your loan term.
Often, yes. For Fannie Mae loans on a one-unit home you live in, you can ask based on today's value if your loan is 75% or less of that value after two to five years, or 80% or less after five years.
If you put down 10% or more, FHA's yearly fee ends after 11 years. If you put down less than 10%, it lasts for the life of the loan. Many people refinance into a conventional loan to drop it.
No. VA loans do not have monthly mortgage insurance. Most VA buyers pay a one-time funding fee instead.
Yes. Extra payments toward principal lower your balance faster, so you can reach 80% of the original value sooner and ask to cancel.
Think you might be close to dropping PMI or FHA mortgage insurance? I can look at your numbers and tell you if a refinance makes sense. Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Figures checked October 11, 2026. Rules can change. Examples are for illustration only and are not a loan offer.
