PMI removal feels arbitrary? What are the actual rules and triggers?

What are the actual rules for PMI removal?

You're asking about the specific rules that determine when private mortgage insurance can be removed from your loan. PMI removal follows federal guidelines that lenders must follow, though the process can feel unclear when you're waiting for it to happen.

PMI automatically cancels when your loan balance reaches 78% of the home's original value, based on your payment schedule. You can request removal once you hit 80% loan-to-value ratio, either through payments or a combination of payments and home value appreciation. Some lenders require a new appraisal to confirm current home value, especially if you're relying on appreciation to reach the 80% threshold.

Check your loan documents for the specific PMI removal process your lender follows. Look for any waiting periods—some lenders require you to make payments for at least two years before allowing removal, even if you reach 80% loan-to-value earlier. Review your monthly statements to track your loan balance and calculate your current loan-to-value ratio.

Contact your loan servicer directly to ask about PMI removal requirements and start the process. They can walk you through their specific documentation requirements and timeline for processing your request.