Private Mortgage Insurance (PMI) protects the lender when a conventional loan’s loan‑to‑value (LTV) ratio exceeds 80%. In New Hampshire, as elsewhere, borrowers can stop paying PMI once they have built enough equity.

Automatic termination at 78% LTV

Federal regulations require lenders to automatically cancel PMI when the outstanding principal reaches 78% of the home’s original purchase price, assuming you are current on payments. No request or new appraisal is needed for this automatic termination.

Requesting removal at 80% LTV

Most lenders will allow you to ask for PMI cancellation once the balance falls to 80% of the original value. To qualify, you usually must:

• Be current on all mortgage payments for at least two years.
• Provide proof of the home’s current market value, often through a lender‑ordered appraisal (cost may be charged to you).
• Submit a written request to the servicer.

Refinancing to eliminate PMI

If you have accumulated 20% or more equity, refinancing into a new conventional loan can remove PMI outright. This option may also let you secure a lower interest rate, but you should weigh closing costs against the monthly PMI savings.

New Hampshire considerations

New Hampshire does not levy a state income tax on wages, which can make the overall cost of homeownership slightly lower compared with many neighboring states. Additionally, most transactions in the Granite State are closed by attorneys rather than title‑company agents, so you may want to ask your attorney about any local documentation required for a PMI removal request.

Remember that lenders may have slightly different policies, so it’s wise to review your loan documents and contact your servicer to confirm the exact steps.

This article provides general information and is not personalized financial advice.