How to Request PMI Removal: Step-by-Step Process

If you’ve been paying PMI for a while, you may already qualify for removal. Here’s the exact step-by-step process to request cancellation from your lender.

Step 1: Check Your Current LTV Ratio

Calculate your current loan-to-value ratio: Current Loan Balance ÷ Original Purchase Price × 100. If the result is 80% or below, you likely qualify. Use your most recent mortgage statement for the balance figure.

Step 2: Verify Your Payment History

Lenders typically require a good payment history — usually 12–24 months with no 30-day late payments. Review your payment history to ensure you qualify before submitting a request.

Step 3: Contact Your Lender

Call or write to your mortgage servicer and request their PMI cancellation process. They are required to provide this information under the Homeowners Protection Act.

Step 4: Order a Home Appraisal (If Needed)

If you’re requesting cancellation based on home appreciation (not just loan paydown), your lender will require a new appraisal. Be prepared to pay $300–$600 for a certified appraisal.

Step 5: Submit Written Request

Submit your request in writing. Include your loan number, property address, and a statement requesting PMI cancellation effective on a specific date. Keep a copy of everything.

Step 6: Await Confirmation

Your lender must respond within 30 days. If approved, PMI cancellation takes effect in the following billing cycle. Verify the change on your next mortgage statement.

What If Your Lender Refuses?

If denied unfairly, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The HPA gives you specific rights that lenders must honor.

Conclusion

Requesting PMI removal is a straightforward process that can save you hundreds per month. Don’t wait for automatic cancellation — be proactive.