Yes — on most conventional loans, private mortgage insurance must be automatically terminated by the servicer once the loan reaches 78% of the original property value, as long as you are current on payments.
Federal rules set a hard stop for many conventional PMI policies once equity reaches the required level.
Automatic termination is generally tied to the original property value used at closing — not necessarily today's market price.
Servicers look at the amortization schedule date when the balance is projected to hit 78% LTV, even if you prepaid a little.
If the loan is past due, automatic termination can be delayed until the account is brought current.
At about 80% LTV you can often request earlier removal. Automatic cancelation is the backstop at 78%.
After termination, PMI should drop off and your total monthly payment should decrease on the next billing cycle.
A few situations still need a borrower request or a different strategy.
A little prep prevents PMI from lingering after it should be gone.
If cash flow matters now, do not wait for 78% if you already qualify to request removal.
Step 1
If you are already near 80% LTV, request cancellation instead of waiting for automatic termination.
Step 2
Market appreciation may support earlier removal under servicer guidelines.
Step 3
Extra payments can pull both the 80% and 78% dates forward.
Step 4
A refinance at or below 80% LTV can drop PMI immediately in the new loan.
Related guides to help you compare options and move toward pre-approval.
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On many conventional loans covered by the Homeowners Protection Act, servicers must terminate PMI by the date the loan is scheduled to reach 78% LTV based on the original value, if payments are current.
You should not have to for the 78% automatic termination — but it is smart to confirm the date and watch your next statement. You can also request earlier cancellation at 80% LTV.
Automatic termination generally requires the loan to be current. Catch up first, then ask the servicer to confirm PMI status.
No. FHA mortgage insurance rules are different and often last much longer. This automatic cancelation discussion is about conventional PMI.
Share your original purchase price and current balance — we will estimate your automatic cancelation date and whether you can request removal sooner.