CancelPMI
PMI rules

The 80% LTV threshold is the number homeowners should not ignore

Automatic cancellation can arrive later than a borrower-request path. The difference is often whether you understand which value your servicer will use and what evidence they require.

Check my LTVUse the letter template

Definition

LTV is loan balance divided by property value

Loan-to-value ratio compares the mortgage balance to the value used for the cancellation review. A $300,000 balance against a $400,000 value is 75% LTV.

The tricky part is not the arithmetic. The tricky part is which value the servicer or investor will accept for the specific cancellation path.

ScenarioBalanceValue usedLTV
Original-value review$300,000$350,000 original value85.7%
Current-value review$300,000$400,000 current value75.0%

80 vs 78

Borrower-request and automatic termination are different

Borrower-request cancellation is the path homeowners usually ask about when they believe they have reached enough equity. Automatic termination is the scheduled lender action that often happens later.

For many conventional loans, the 78% automatic rule is tied to the original value schedule. That can lag behind real market value when the home has appreciated.

Preparation

A strong request is specific and documented

Before you contact the servicer, know the loan type, current balance, approximate value, PMI amount, occupancy, and payment history. If your request depends on current value, expect the servicer to control the valuation process.

  1. 1

    Calculate your current LTV.

  2. 2

    Check whether the loan is conventional PMI, FHA MIP, VA, or USDA.

  3. 3

    Review recent payment history for late payments.

  4. 4

    Find the servicer's current PMI cancellation instructions.

  5. 5

    Keep copies of every request and response.

FAQ

Is 80% LTV always enough to cancel PMI?

No. It is a common milestone, but servicer, investor, payment-history, occupancy, and valuation rules can change the answer.

Why does my lender talk about 78% instead?

The 78% threshold usually refers to automatic termination. A borrower-request path can be different and may require you to ask before the automatic date.

Can appreciation count?

Sometimes, depending on the investor and servicer rules. Requests based on current value often require a valuation ordered through the servicer.

Check your own PMI numbers before you call the servicer.

The fastest way to make the next step concrete is to run the calculator and see whether your LTV, loan type, and PMI amount point toward a cancellation review.

Start the free check

Related

PMI Removal Calculator

Use the free PMI removal calculator to check your loan-to-value ratio, estimate monthly savings, and see whether a conventional PMI cancellation request may be worth reviewing.