Homeowners paying Private Mortgage Insurance often continue paying monthly fees long after meeting cancellation criteria. Federal law grants conventional borrowers the right to eliminate PMI.
CFPB rules allow conventional borrowers to request PMI cancellation when principal reaches 80% of original home value. Servicers must automatically terminate PMI once principal hits 78% of original value.
FHA loans carry different rules. FHA mortgage insurance premiums frequently run for the entire loan term, meaning FHA borrowers cannot cancel via the 80% conventional rule.
For conventional borrowers with good payment history, sending one written cancellation request eliminates PMI fees.
How much are you paying in mortgage insurance each month?
