How to Get Rid of PMI (and When It Goes Automatically)

By Alamzeb Khan · Updated August 2026 · 6 min read · PMI Removal Calculator →

What you are actually paying for

Private mortgage insurance is charged when you buy with less than 20% down. It is worth being clear about what it does: it protects your lender if you stop paying. You pay the premium. They collect if things go wrong. You get nothing.

That is not a criticism - it is the mechanism that lets people buy without a large deposit. But it does mean every month you pay it beyond the minimum is money doing nothing for you at all.

The two dates that matter

There are two thresholds, and the gap between them is money.

80% of the original value - you can request removal. 78% of the original value - it must come off automatically.

On a $300,000 home bought with 5% down (a $285,000 loan) at 6.5% over 30 years, from the PMI removal calculator:

Two things stand out.

It takes over ten years. On scheduled payments alone, a 5% deposit means more than a decade of premiums. People routinely assume it falls off after a couple of years.

There are eleven months between the two dates. Those are eleven months of premiums you can avoid by writing a letter. Nobody will remind you - the request point is yours to notice.

Paying extra brings both dates forward

Because the thresholds measure your balance, anything that reduces the balance faster moves them.

Same loan, but paying $200 a month extra:

Nearly four years earlier. And the saving is not just the premiums - the extra payments were reducing your interest bill at the same time.

This is one of the better arguments for overpaying early on a low-deposit mortgage. You are not only saving interest; you are buying your way out of a charge that does nothing for you.

The rule people get wrong

The 80% and 78% thresholds are based on the original value - the price when you bought, not what the home is worth now.

So the market going up does not, by itself, move these dates. Someone whose home has risen 20% still hits the automatic point on the same schedule.

But many lenders will consider removing PMI based on a new appraisal if the home has genuinely appreciated. That is a separate route with its own rules, and it usually costs a few hundred pounds for the appraisal.

In a market that has moved meaningfully, that few hundred can buy back years of premiums. It is worth asking your servicer what they require - the answer varies, and you will not find it out unless you ask.

What to actually do

1. Find out your two dates. Work out when you reach 80% and 78% of the original value. Put the 80% date in a calendar now - it is the one nobody tells you about.
2. Write to your servicer at the 80% point. It has to be a request, and it usually has to be in writing. Expect them to want the account current and possibly an appraisal.
3. Consider paying extra, especially early. It brings both dates forward and cuts interest at the same time.
4. If your area has risen sharply, ask about a new appraisal. Different route, different rules, potentially years earlier.
5. Check what you are actually paying. Many people have no idea what their monthly PMI figure is. It is on your statement, and knowing it makes the whole decision concrete.

Work out your own dates in the PMI removal calculator - it shows both thresholds, what extra payments do to them, and the gap between the date you can ask and the date it happens on its own.

Common questions about pmi removal