If you put down less than 20% on a conventional mortgage, your lender required private mortgage insurance. It typically costs 0.3%–1.5% of your loan amount per year — $150–$400 a month on a typical loan — and it insures the lender against your default. You get nothing from it. The Homeowners Protection Act of 1998 (HPA, 12 U.S.C. §4901–4910) exists because lenders historically kept collecting PMI long after borrowers stopped needing it.
| Path | Threshold | Who acts | Cost |
|---|---|---|---|
| Borrower-requested cancellation | 80% LTV of original value | You, in writing | Usually free |
| Automatic termination | 78% LTV of original value (scheduled) | Servicer, automatically | Free |
| Current-value cancellation | 75% LTV (loan 2–5 yrs old) or 80% (5+ yrs) of today's value | You, in writing + valuation | ~$150–600 valuation |
Because nobody tells you it exists. Your servicer earns nothing by helping you cancel, and the automatic 78% date is calculated from your original amortization schedule — it ignores everything your home gained in value. After the 2020–2024 appreciation run, millions of low-down-payment buyers crossed the current-value threshold years ahead of schedule. The rules are in the GSE servicing guides (Fannie Mae B-8.1-04 and Freddie Mac's equivalent): loans seasoned 2–5 years qualify at 75% LTV of current value; loans past 5 years qualify at 80%.
All borrower-initiated paths require a clean record: no payment 30+ days late in the past 12 months, and none 60+ days late in the past 24 months. The loan must be current, and there generally can't be junior liens against the property for current-value requests.
First, confirm your loan type — if your statement says "MIP" you have an FHA loan and different rules apply. Second, run both LTV tests with real numbers (our calculator does both, plus your auto-termination date). Third, send a written request citing 12 U.S.C. §4902 — phone calls create no record. Fourth, if you're on the current-value path, the servicer orders the valuation; you pay for it, but you don't choose the vendor. Finally, the servicer must respond within 30 days and, on cancellation, refund unearned premiums.
Denials must state their grounds in writing, including the valuation figures used. If your servicer misses the 30-day window or denies without support, escalate: resend by certified mail referencing the first request, ask for the PMI department by name (each servicer has one — see our servicer playbooks), and if that fails, file a CFPB complaint at consumerfinance.gov/complaint. Servicers answer CFPB complaints because they're tracked and audited.
Yes — that's the entire point of the HPA. Cancellation by written request costs nothing (original-value path) or the price of a valuation (current-value path). A refinance is only necessary for FHA loans with lifetime MIP.
Extra principal payments move your 80%-of-original-value date earlier. Whether a lump sum pays for itself depends on how close you already are — our checker calculates the break-even for your exact numbers.
The HPA covers primary residences. GSE rules for second homes and investment properties use stricter thresholds (typically 70–65% current-value LTV). The written-request process is the same.
LPMI is built into your interest rate and cannot be cancelled. Your exits are refinancing or paying off the loan.