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Mortgage Glossary

PMI Cancellation

Mike Starr·Reviewed August 2026

PMI cancellation is the removal of private mortgage insurance from a conventional loan once the borrower has reached sufficient equity. Under the Homeowners Protection Act, borrowers can request PMI cancellation when the loan balance reaches 80% of the original purchase price, and lenders must automatically terminate it at 78% LTV. A new appraisal may be required if cancellation is based on increased home value.