How to Remove PMI on a Conventional Loan in South Carolina

Conventional Loan

How to Remove PMI on a Conventional Loan in South Carolina

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

Key takeaways

You can request PMI cancellation once your loan‑to‑value (LTV) reaches 80 % (you own 20 % of the home).
The mortgage servicer must automatically terminate PMI when the LTV reaches 78 % (based on the original amortization schedule).
You may need a new appraisal, a written request, or to pay a termination fee, and you must follow your lender’s specific procedures.

Private mortgage insurance (PMI) protects the lender when a conventional loan is funded with less than a 20 % down payment. Removing PMI reduces your monthly payment, so many homeowners look for ways to cancel it once they have built enough equity.

When lenders must automatically end PMI

Under the Homeowners Protection Act, a lender is required to terminate PMI automatically when the loan‑to‑value ratio falls to 78 % of the original purchase price, assuming the borrower is current on payments. This automatic termination occurs on the scheduled amortization date, not earlier.

How to request early cancellation

If you reach 80 % LTV (you own at least 20 % equity) you can ask the servicer to cancel PMI before the automatic date. To qualify, you typically need a good payment history (usually no late payments in the past 12 months) and may need to provide proof of the home’s current value, often through a new appraisal.

Steps to take in South Carolina

Review your loan documents or the annual mortgage statement to find the lender’s specific PMI removal policy.
Obtain evidence of equity – a recent payoff statement, a home‑value estimate, or a formal appraisal.
Submit a written request to your servicer once you are at 80 % LTV, including the supporting documentation.
If a new appraisal is required, hire a South Carolina‑licensed appraiser. Because most SC closings involve an attorney, you may have the attorney review the appraisal report before sending it to the lender.
Pay any applicable termination fee if the lender charges one.
Ask for written confirmation that PMI has been removed and request an updated mortgage statement reflecting the change.

South Carolina‑specific considerations

Many real‑estate transactions in South Carolina are handled by an attorney rather than a title company, which can affect how documents are prepared and reviewed for PMI cancellation. Additionally, the South Carolina Housing Finance Authority offers a first‑time‑homebuyer program that provides down‑payment assistance; participation in that program may influence the timing of when you reach the required equity.

These steps are general guidelines; your loan’s terms and your lender’s policies may differ.

This article provides general information and does not constitute personalized financial or legal advice.

FAQ

Can I stop paying PMI if I refinance my loan?

Refinancing with a new loan that has at least 20 % equity eliminates the need for PMI on the new loan. However, you will need to cover any closing costs associated with the refinance.

What if my home’s value has increased but the loan balance is still above 80 % LTV?

Most lenders require the loan‑to‑value ratio to be calculated using the original purchase price, not the current market value, for automatic termination. You can still request early cancellation, but the lender may ask for a new appraisal to verify the increased equity.

Do I have to pay a fee to cancel PMI early?

Some lenders charge an administrative fee for processing an early cancellation request. The fee amount varies, so check your loan agreement or ask the servicer for details.

How often can I request a new appraisal for PMI removal?

There is no set limit, but lenders typically allow one appraisal per request. Repeated requests may be denied or may incur additional costs, so it’s best to time your request when you are confident you have reached the required equity.

Will removing PMI affect my credit score?

Canceling PMI does not directly impact your credit score. However, any related actions such as a refinance or a new loan application could result in a hard inquiry, which may temporarily affect the score.

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