PMI & equity
How to Get Rid of PMI: Check Your Loan’s Requirements
Begin with your mortgage servicer, before buying a valuation. Ask for the cancellation requirements for your loan and keep the response with your mortgage records. A report you order independently may not be usable.
Updated September 10, 2026
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The right next step may be a written cancellation request, a servicer-arranged valuation or waiting until an applicable termination date. An appraisal does not itself remove PMI.
Original-value cancellation and automatic termination
For covered loans, cancellation can be requested at 80% of original value, subject to conditions including payment history, current payments, no junior liens and evidence of no decline in value. Automatic termination generally occurs at the scheduled 78% point when payments are current. FHA, VA and lender-paid insurance follow different rules. See the CFPB source below.
Current-value requests follow investor rules
Fannie Mae’s current-value process varies with property type, loan age and payment history. It requires an eligible valuation through the servicer’s process; the guidance refers to BPOs as well as appraisals. Do not assume 20% current equity or a privately ordered report qualifies.
Questions to ask before spending money
Request a written explanation that applies to your loan. Keep the answers together so you can compare any proposed report with the actual requirement.
- Which investor and cancellation route apply?
- What value, balance, payment history and loan-age rules apply?
- Is a valuation needed, what type, and who must order it?
- What is the fee, and is it payable if cancellation is denied?
- What documents and next steps are needed after the valuation?
If a valuation is required
Agree the assignment only after the servicer confirms the ordering route. The appraiser must reach an independent conclusion and cannot target a value that removes your premium. If the servicer orders its own report, follow that process instead of buying a duplicate here.
Questions people ask
Should I order an appraisal first?
No. Ask your servicer to confirm that a borrower-ordered appraisal can be used before purchasing this service.
Does a higher appraised value guarantee cancellation?
No. Eligibility and the accepted valuation process depend on your loan. Ask the servicer to explain its decision and any remaining requirements.
Sources
Sources checked September 10, 2026. Confirm the requirements for your specific assignment with your recipient or advisor.
