# What Is PMI, and When Does It Go Away? Canonical URL: https://valor.mortgage/answers/what-is-pmi/ Page title: What Is PMI, and When Does It Go Away? | Valor Mortgage By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) Last updated November 5, 2026 Rules accurate as of November 2026 Quick answer PMI, or private mortgage insurance, is usually required on a conventional loan with less than 20% down. It protects the lender, not you, if you stop making payments. You have the right to ask your servicer to cancel it when your balance is scheduled to reach 80% of the home’s original value. It generally ends automatically at 78% if you’re current. FHA, VA and USDA use different rules. Rules on this page were checked on November 5, 2026 against CFPB guidance. Program terms are subject to agency and lender guidelines and may change, and individual lenders can set stricter rules. ## What PMI is and why you may need it January 23, 2026 · 38 seconds · [Watch on YouTube](https://www.youtube.com/shorts/PVIm_C0tR5c) **Transcript:** So what is PMI and why do I need it? If you're looking to purchase using conventional financing, putting a less than 20% down is going to require you to have PMI or private mortgage insurance. This private mortgage insurance is different from typical homeowners insurance or any other types of insurance. It is an insurance to reduce the risk to the investor. So if you're looking to purchase a home and you're putting less than 20% down using conventional financing, then you're going to be required to have private mortgage insurance. But if you want to look at your options and see where you can save the most money, then give us a call and buy with confidence and buy with Valor. ## When can PMI end? | Trigger | What happens | What you need | |---|---|---| | **You ask at 80%** | You can ask to cancel when your balance is scheduled to reach 80% of the original value, or earlier if you made extra payments | A written request and a good payment history; your servicer may also require evidence the home hasn’t lost value | | **Automatic at 78%** | In general, your servicer must end PMI when the balance is scheduled to reach 78% | You need to be current on your payments | Source: CFPB. Some loans, including lender-paid mortgage insurance, can have different rules. Your PMI disclosure form shows your dates. “Original value” generally means the lower of the sale price or the appraised value when you bought. Some servicers may consider a new appraisal after the value rises, under their own rules, so ask yours. ## How do other loans handle this? | Loan | What you pay | Does it end? | |---|---|---| | [Conventional](https://valor.mortgage/conventional-loans/) | PMI below 20% down | Yes, as shown above | | [FHA](https://valor.mortgage/fha-loans/) | Upfront and annual mortgage insurance | Annual premium lasts the life of the loan with under 10% down | | [VA](https://valor.mortgage/va-loans/) | No monthly mortgage insurance; a funding fee may apply | The fee is one-time, and some veterans are exempt | | [USDA](https://valor.mortgage/usda-loan/) | Upfront and annual USDA fees | The annual fee continues with the loan | For details and current premiums, see [our mortgage insurance guide](https://valor.mortgage/mortgage-insurance-vs-home-insurance-knowing-the-difference/). Terms are subject to agency and lender guidelines and may change. ## Is PMI always a bad thing? Not always. It’s a cost, but it can let you buy sooner rather than waiting years to save 20%. As Christopher puts it in another video, you could be chasing your tail trying to save that much while home prices move. Home values can fall as well as rise, so this isn’t a promise, but it’s worth comparing. Read [how much down payment you may need](https://valor.mortgage/how-much-of-a-down-payment-for-a-house-do-you-need/). ## Can you avoid PMI? - Put 20% down on a conventional loan. - Use a VA loan, if you’re eligible. - Ask about lender-paid mortgage insurance. A higher rate may replace the separate premium, and it can’t be canceled in the same way. Compare these on total cost rather than one line of the payment. Your credit score and down payment affect the PMI premium, so [loan-to-value](https://valor.mortgage/answers/what-is-loan-to-value/) matters. ## PMI FAQ ### Is PMI the same as homeowners insurance? No. Homeowners insurance protects your home and belongings. PMI protects the lender if you stop paying. See [the difference](https://valor.mortgage/mortgage-insurance-vs-home-insurance-knowing-the-difference/). ### How do you get rid of FHA mortgage insurance? It depends on your down payment and when your loan started. With under 10% down, the annual premium generally lasts the life of the loan, so some owners later refinance to a conventional loan. A refinance has closing costs, so compare. ### How much does PMI cost? It varies with your credit score, down payment, lender and market conditions. Your Loan Estimate shows the mortgage insurance amount for your loan. ## Where these rules come from | Rule or figure | Source | As of | |---|---|---| | PMI definition and cost factors | [CFPB, private mortgage insurance](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/) | Nov 5, 2026 | | Removing PMI, 80% and 78% | [CFPB, removing PMI](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) | Nov 5, 2026 | | Loan-to-value | [CFPB, loan-to-value ratio](https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-to-value-ratio-and-how-does-it-relate-to-my-costs-en-121/) | Nov 5, 2026 | ## Related answers and guides - [What’s included in a mortgage payment?](https://valor.mortgage/answers/what-is-included-in-a-mortgage-payment/) - [What does loan-to-value mean?](https://valor.mortgage/answers/what-is-loan-to-value/) - [How can you pay off your mortgage faster?](https://valor.mortgage/answers/how-can-i-pay-off-my-mortgage-faster/) - [More answers on your payment and rate](https://valor.mortgage/answers/#payment). - [About Christopher Armantrout](https://valor.mortgage/about-us/). [Call me at (615) 671-9178](tel:+16156719178). That’s the fastest way to get a straight answer on what you’d qualify for and how mortgage insurance would affect your loan. If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/). Pick a slot that works and I’ll call you then. If your life is too chaotic for a phone call right now — I understand — [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan. About the author [Christopher Armantrout](https://valor.mortgage/about-us/) Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804 Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee. [More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) **Valor Mortgage, LLC** · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity 724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · [NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify. --- ## Contact Valor Mortgage - Christopher Armantrout, Senior Loan Officer, NMLS #1210804 - Phone: [(615) 671-9178](tel:+16156719178) - Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage) - Office: 724 S Main St, Springfield, TN 37172 - [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/purchase/) · [Contact page](https://valor.mortgage/contact-us/) Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity. All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.