How to Remove PMI on a Conventional Loan in Pennsylvania

Conventional Loan

How to Remove PMI on a Conventional Loan in Pennsylvania

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

Key takeaways

Automatic PMI cancellation occurs at 80 % loan‑to‑value.
Borrower can request cancellation at 78 % loan‑to‑value with 12‑24 months of on‑time payments.
Early removal is possible with a new appraisal, often at 75 % loan‑to‑value.
Refinancing into a loan under 80 % LTV eliminates PMI.
In Pennsylvania, closings are commonly handled by attorneys, which can affect the refinancing timeline.

Private Mortgage Insurance (PMI) is required on most conventional loans when the down payment is less than 20% of the home’s purchase price. Once you have built enough equity, the insurance can be removed, which lowers your monthly payment.

Automatic cancellation at 80 % loan‑to‑value

Federal law requires lenders to automatically terminate PMI when the loan balance reaches 80 % of the original property value, provided you are current on your mortgage.

Borrower‑initiated cancellation at 78 % loan‑to‑value

You can ask the lender to cancel PMI once your balance falls to 78 % of the original value. The lender will usually ask for a written request and may require proof that you have a good payment history (typically 12‑24 months of on‑time payments).

Early removal with a new appraisal

If you think your home’s value has risen, you can request an early cancellation. Most lenders will order a new appraisal and will consider removal if the current LTV is at or below 75 %.

Refinancing to a lower‑LTV loan

When interest rates are favorable, refinancing into a new conventional loan with a loan‑to‑value below 80 % eliminates PMI entirely. In Pennsylvania, many borrowers use an attorney‑conducted closing, which can streamline the process.

Steps to request PMI removal

Check your latest mortgage statement for the current loan balance.
Calculate the LTV using the original purchase price (or the most recent appraisal if you’re seeking early removal).
Gather proof of on‑time payments (usually 12‑24 months).
Contact your lender’s loan servicer with a written request.
If required, schedule a new appraisal.
Review the lender’s confirmation that PMI has been cancelled and verify the adjustment on your next billing statement.

Remember, each lender may have slightly different paperwork requirements, so it’s wise to ask for a detailed checklist.

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

FAQ

Can I cancel PMI before reaching 78% loan‑to‑value?

Some lenders allow early cancellation if a new appraisal shows the current loan‑to‑value is at or below 75%. You’ll need to submit a written request and pay for the appraisal, but approval is not guaranteed.

Does Pennsylvania offer any state programs that help with PMI?

Pennsylvania’s First‑Time Homebuyer programs provide down‑payment assistance that can reduce the need for PMI, but the state does not directly remove PMI. Any assistance that lowers your required down payment can help you reach the 20% equity threshold sooner.

Will refinancing always remove PMI?

Refinancing eliminates PMI only if the new loan’s LTV is below 80% of the property’s appraised value. If the refinance still results in a higher LTV, PMI may remain.

How long does a lender have to process a PMI cancellation request?

Most lenders process a cancellation within 30 days after receiving all required documents, though the exact timeline can vary based on the lender’s policies and whether an appraisal is needed.

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