Identify what kind of mortgage insurance you actually pay
Conventional private mortgage insurance and FHA mortgage insurance premiums are not interchangeable. On many eligible conventional mortgages, the Homeowners Protection Act provides borrower-requested cancellation and automatic termination milestones based on original value and scheduled balance, subject to requirements. Certain loan categories and servicer policies differ. First inspect your mortgage statement and original closing documents so you do not compare the wrong cancellation rules.
- Check whether insurance is conventional PMI or FHA MIP
- Find the original home value and loan origination date
- Contact the servicer for its written cancellation policy
Ask whether the existing loan already has a cancellation path
For qualifying conventional loans, reaching specific principal-to-original-value thresholds can create a path to request or receive cancellation. Payment history, property value or subordinate liens can matter depending on the requested approach. Some investors or servicers may offer additional current-value review options, but those are not guaranteed. Before paying for an appraisal or ordering a refinance, ask the current servicer what exact proof it will accept and whether a charge applies.
- Ask for the earliest possible PMI cancellation date
- Request the specific payment-history and valuation conditions
- Do not order a valuation until the servicer confirms requirements
Compare the savings with the real cost of refinancing
A full refinance replaces your note and can change the interest rate, term, closing costs and total interest over time. Removing PMI through the existing servicer may avoid those refinancing expenses if eligible. For an FHA mortgage, explore program-specific options because conventional PMI statutes do not simply remove FHA premiums. Ask for an apples-to-apples scenario comparing the current payment, insurance changes, future balance and possible new loan costs.
- Obtain the servicer's written decision before refinancing
- Compare total payment and outstanding balance after any change
- Review FHA and conventional rules separately with a lender
Official information
Terms, loan rules, funding and eligibility can change. These references are for education; always confirm the current written terms with the appropriate agency and lender.
CFPB — When can I remove private mortgage insurance? ↗