A mortgage statement with a blue highlighted line beside coffee and a pen on a sunlit kitchen counter.

The Year-End PMI Check: Why October Is the Right Month to Request Cancellation

Adam Wiener

Oct 7, 2026

Quick Answer: For many conventional mortgages, borrowers can request PMI cancellation at 80% of the home’s original value, subject to conditions. Cancellation based on current value follows separate investor rules. October is a useful time to ask your servicer about eligibility, required evidence, and processing, but there is no universal October deadline or guaranteed year-end removal.

Last updated: October 1, 2026

Private mortgage insurance is a recurring cost worth reviewing as you pay down your loan. It may appear within your total monthly mortgage payment, making it easy to overlook. October can be a useful annual check, but eligibility and the applicable cancellation rules matter more than the calendar.

How Do You Know If You Are Still Paying PMI?

Open your most recent mortgage statement and find the payment breakdown. You are looking for a line labeled PMI, MI, or mortgage insurance, separate from principal, interest, property taxes, and homeowners insurance. Many homeowners carry it without recognizing it, because escrow presents a single combined number. Write down the monthly figure and multiply by twelve. That annual amount is what is at stake, and it is protecting your lender rather than you.

What Threshold Actually Triggers Cancellation?

For covered loans, federal rules generally permit a written cancellation request when the balance is scheduled to reach, or actually reaches, 80% of original value, subject to payment, lien, and property-value conditions. Automatic termination generally occurs on the scheduled 78% date if payments are current. Current-value requests follow separate investor rules: Fannie Mae generally uses 75% LTV at two to five years and 80% after five years for a one-unit principal residence or second home, with additional conditions and exceptions.

What Your Lender Will Require

Ask your servicer which cancellation route applies and how it obtains any required valuation. Depending on the route, it may use an automated value, broker price opinion, or appraisal, often through its own process. Do not order a private appraisal until the servicer confirms that it can accept that report. Compare any quoted valuation fee with the premium savings and timing; neither acceptance nor savings is guaranteed. The full sequence is described in the formal PMI removal process and what your lender requires.

Check Your Loan Type Before You Start

Conventional PMI and FHA mortgage insurance premiums follow different rules. For many FHA loans with case numbers assigned on or after June 3, 2013, annual MIP lasts 11 years when original LTV was 90% or less and for the loan term when it was above 90%. Paying off or refinancing the loan can end that loan’s MIP, but refinancing has costs and may change your rate.

A request made early gives you more time to clarify requirements and supply any missing documents. If you have never reviewed the mortgage insurance line, start with the servicer’s eligibility explanation rather than assuming the premium can end by a particular date. We complete PMI removal appraisals throughout Eastern Massachusetts, including Canton and the surrounding communities.

Frequently Asked Questions

At what point can I request PMI removal?

For covered loans, the usual federal request threshold is 80% of original value, subject to conditions. Current-value cancellation has separate investor rules and may require more equity or seasoning. Ask your servicer which route applies.

Does removing PMI require an appraisal?

Not always. The required evidence depends on the loan and cancellation route. Ask the servicer whether it needs an appraisal or another valuation and who must order it before paying for a report.

Can I remove mortgage insurance on an FHA loan?

FHA MIP uses different rules from conventional PMI. Its duration depends on the case-number assignment date and original LTV. Ask the servicer for your scheduled end date and compare the full costs and rate impact before considering refinancing.

If your servicer confirms that it can accept a privately commissioned appraisal, our PMI removal appraisal service can provide an independent value opinion for its review. Confirm the required scope and ordering process first.