How to Remove PMI on a Conventional Loan in Washington

Conventional Loan

How to Remove PMI on a Conventional Loan in Washington

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

Key takeaways

PMI can be cancelled automatically at 78% loan‑to‑value (LTV) under the Homeowners Protection Act.
You may request removal at 80% LTV, but the lender can require a new appraisal and may charge a fee.
In Washington, the lack of a state income tax means PMI payments are not tax‑deductible, so removing PMI can improve cash flow.

Private Mortgage Insurance (PMI) protects the lender when a conventional loan’s down payment is less than 20% of the home’s value. While it helps you qualify for a loan, it adds to your monthly payment. Removing PMI saves money, but you must meet specific criteria.

When PMI can be removed

Automatic termination: Under the Homeowners Protection Act, the lender must automatically cancel PMI when the loan reaches 78% LTV based on the original purchase price, provided you are current on payments.
Borrower‑initiated cancellation: You can ask the lender to cancel PMI once the loan reaches 80% LTV. The lender may require a new appraisal to confirm the current value and may charge a processing fee.

Steps to request PMI removal

Check your loan balance against the original purchase price to confirm you have reached the 80% LTV threshold.
Gather supporting documents, such as recent pay stubs, tax returns, and a copy of your mortgage statement.
Contact your lender’s loan servicer and ask for the PMI cancellation form. Ask whether a new appraisal is required.
If an appraisal is needed, schedule it with a qualified appraiser. The cost is typically paid by the borrower.
Submit the completed form and any required appraisal report. The lender will review and, if everything checks out, cancel the PMI.

Washington‑specific considerations

Washington State does not have a personal income tax, so PMI premiums are not deductible on your federal return. This makes the cash‑flow benefit of removing PMI especially valuable for Washington homeowners. Additionally, many Washington closings are handled by title companies rather than attorneys, so the paperwork for a PMI cancellation request usually goes through the lender’s servicing department rather than a separate legal office.

This article provides general information and is not personalized financial advice. Consult your lender or a qualified professional for guidance specific to your situation.

FAQ

Can I request PMI removal before reaching 80% LTV?

Some lenders may allow early cancellation if you can demonstrate a significant increase in home value, but most require at least 80% LTV. You would still need to provide an appraisal and may pay a higher fee.

What documents do I need to submit for a PMI cancellation request?

Typically you’ll need a recent mortgage statement, proof of payment history (e.g., 12‑month payment record), and, if required, a new appraisal report. The lender may also ask for income verification to ensure you can continue making payments without PMI.

Does Washington have any state programs that help with PMI?

Washington’s Housing Finance Commission offers down‑payment assistance programs for eligible first‑time buyers, but these programs do not directly reduce or eliminate PMI. They can help you reach a 20% equity threshold faster, indirectly enabling earlier PMI removal.

Will removing PMI affect my credit score?

Cancelling PMI does not directly impact your credit score because it is not a revolving credit account. However, if the lender requires a new appraisal and you miss a payment while the request is processed, that could affect your score.

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