When does PMI cancel on a standard 30-year conventional loan?

When you 20% equity in the property. This can be any combination of price appreciation in your area, principal reduction of the mortgage, or increase of value due to improvements you make. A new appraisal will be required to determine the current loan-to-value. Check with your lender first as they will need to order the appraisal and the PMI co. may have additional requirements for cancellation, such as a minimum number of PMI payments.

1. You should have received a disclosure telling you when it ends. 2. If you pay down the loan or the value increases, you have to ask you current lender to see what their guidelines are.

With the market going up lately it could be wise to get an appraisal and if it shows it is above 80% LTV then your lender should drop the MI.

FHA pmi has to stay on the loan a minimum of 5 years and once the balance is under 80% of the original price (or value on a refinance) the borrower must request that the pmi come off. At 78% the pmi will be removed automatically by the lender.

At a mortgage balance of 80% of original purchase price, by request, at 78%, automatically.

It is actually when your LTV hits 78%. You will need an appraisal and will probably have to be by an approved appraiser that your bank will select.

Hi, if you think your close to 80% I would contact your lender/servicer and find out your options. I have seen lenders not drop PMI after 78% when it was supposed to be automatic...

When your loan-to-value reaches 78% it will be canceled automatically, when the loan reaches 80% it you'll need to request it. To determine that it has reached 80% you'll need to order an appraisal.

When you closed you should have recieved the amorization schedule which will show you.

The below answers are correct. At 80% ltv or automatically removed by the lender at 78%.

There are two options: The first is that the PMI will automatically cancel once you reach 78% of the original loan balance all by itself. The second is you can ask to have it removed once you believe the loan has dropped below 80% of the current value. They will almost always make you get an appraisal to prove the value.

Last comment by Joe is on the money!

When you own a 20% interest in your home.

Most of the time, our PMI just drops off after you hit 78% LTV. I concure with Mizzola, read the disclosures, make your LO run that question up the flagpole early on. Not all are the same (depends as much on the servicer as the originator). It's lot easier if you can just pay down your note and not have to worry about appraisals later on.