What Are the Requirements to Remove Mortgage Insurance?

Short Answer

Mortgage insurance removal depends on your loan type and current loan balance. Some mortgage insurance can be removed once certain conditions are met, while other types may be required for a set period or for the life of the loan.
 

What’s Happening

You may have built equity in your home and want to lower your monthly payment by removing mortgage insurance. Mortgage insurance is typically required when a home is purchased with less than 20% down.

Removal rules depend on whether your loan has:

• Private Mortgage Insurance (PMI) on a conventional loan, or
• Mortgage Insurance Premium (MIP) on an FHA loan

Each program follows different guidelines.
 

What It Means for You

If You Have PMI (Conventional Loan):

• You may request removal when your loan balance is at or below 80% of your home’s original value (or possibly current value, depending on eligibility).
• You must have a strong payment history and be current on your loan.
• Your property value must not have declined.
• A valuation (such as an appraisal or broker price opinion) may be required and must be arranged through us.

PMI automatically cancels when your loan is scheduled to reach 78% of the original property value, provided your loan is current.

If You Have MIP (FHA Loan):

• Some FHA loans require MIP for 11 years.
• Others require MIP for the life of the loan.
• Certain older FHA loans may allow cancellation at 78% loan-to-value after required timeframes are met.
• Some FHA loans require refinancing to eliminate MIP.

Removing mortgage insurance does not change ownership of your property or your responsibility for the loan.

What You Should Do Next

1. Confirm whether your loan has PMI or MIP.
2. Review your loan balance and payment history.
3. Use the Mortgage Insurance Removal tool to request the removal of PMI.
4. Contact us if you additional questions, or issues with the tool.

You will receive written notice once a decision has been made.

Important Dates, Fees, or Risks

• PMI may automatically cancel at 78% loan-to-value (if current).
• Some FHA loans require 11 years or the full loan term.
• A valuation fee may apply and is generally non-refundable once completed.
• You cannot order your own appraisal.
• Approval is not automatic.

Contact Us If

• You’re unsure whether you have PMI or MIP
• You want to confirm eligibility
• You believe your balance is below 80%
• You need assistance after trying the Mortgage Insurance Removal tool