How to Remove PMI on a Conventional Loan in New York

Conventional Loan

How to Remove PMI on a Conventional Loan in New York

Reviewed by the HomeMath editorial team Updated 2026-08-06

Key takeaways

PMI is automatically cancelled when the loan‑to‑value (LTV) reaches 80% of the original purchase price.
You can request PMI removal once your LTV is 78% and you’ve been current on payments for at least two years.
An independent appraisal can trigger earlier removal if it shows you have at least 20% equity.

Private Mortgage Insurance (PMI) protects the lender when a conventional loan is made with less than a 20% down payment. Because the borrower has higher risk, the lender requires PMI until enough equity is built.

Automatic Cancellation at 80% LTV

Under federal law, lenders must automatically terminate PMI when the loan‑to‑value ratio, based on the original amortization schedule, falls to 80% of the home’s original purchase price. This is why many borrowers see PMI disappear after a few years of regular payments.

Borrower‑Requested Cancellation at 78% LTV

Even though the lender will cancel automatically at 80%, you can ask for removal earlier. If your balance reaches 78% of the original purchase price and you have been current on your mortgage for at least two years, you may submit a written request to stop PMI.

Using an Appraisal for Early Removal

If home values have risen, an independent appraisal can prove you now have 20% equity before reaching the 78% threshold. The lender will typically require a new appraisal that costs the borrower, and the appraisal must show the current market value is high enough to meet the 20% equity rule.

New York‑Specific Considerations

New York closings usually involve an attorney, who can help review the lender’s PMI cancellation policy and ensure any required documents are properly filed.
Some local first‑time‑buyer programs, such as the New York State Homebuyer Assistance Program, may offer down‑payment assistance that reduces the need for PMI in the first place.

Steps to Request Removal

Check your latest mortgage statement or online portal for the current loan balance.
Calculate the LTV using the original purchase price (or the appraised value if you’re using an appraisal).
Gather proof of payment history showing you are current for at least two years.
Contact your lender’s mortgage servicing department with a written request, attaching the payment history and, if applicable, the new appraisal report.
Follow up to confirm the lender has processed the cancellation and that future statements no longer include PMI.

This article provides general information about PMI removal on conventional loans in New York and is not personalized financial advice. Consult your lender or a qualified professional for guidance specific to your situation.

FAQ

Can I refinance my loan to eliminate PMI?

Refinancing to a new loan with at least 20% equity can remove PMI, but you’ll need to consider closing costs and whether the new interest rate offers a net savings.

Does the lender have to cancel PMI automatically at 80% LTV?

Yes, federal regulations require automatic cancellation once the loan reaches 80% LTV based on the original amortization schedule, provided the loan is current.

What paperwork is needed to request PMI removal in New York?

Typically you’ll need a written request, proof you’ve been current on payments for at least two years, and, if you’re using an appraisal, the new appraisal report showing at least 20% equity.

Will the appraisal required for early PMI removal cost me?

Yes, the borrower usually pays for a new appraisal, and the cost can vary by appraiser and property size. Some lenders may have preferred appraisal firms.

How do New York state homebuyer assistance programs affect PMI?

Programs that provide down‑payment assistance can reduce the initial loan‑to‑value ratio, potentially avoiding PMI altogether. However, each program has its own eligibility criteria and guidelines.

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