Under the Homeowners Protection Act (HPA), lenders are legally required to cancel PMI once your mortgage balance reaches 78% of your home’s original value—that is, when you’ve built up 22% equity.  

This automatic cancellation:

•  Is based on the original property value at the time you bought your home
• Applies only if you’re current on your payments
• Does not require you to ask; your lender must remove it once the threshold is met

You don’t have to wait for your lender to remove PMI automatically. You can actually request it earlier once your loan-to-value ratio (LTV) reaches 80%.  

That means you’ve gained 20% equity in your home through one or more of the following:  

• Regular monthly payments that reduce principal
• Extra payments directly toward principal
• A shorter or accelerated amortization schedule  

To qualify, you’ll generally need to:

• Be current on your mortgage payments
• Have a good payment history (no serious delinquencies)
• Verify that your home hasn’t decreased in value  

If you meet those conditions, your lender is required to review your request and remove PMI once you qualify.

Rising home values can help you eliminate PMI sooner even if your original mortgage balance hasn’t reached 80% of the purchase price.

You can request PMI removal based on your home’s current market value, but lenders set specific conditions:  

• You’ll likely need to pay for a professional appraisal to confirm your home’s new value
• Many lenders require 2–5 years of on-time payments before considering removal based on appreciation
• Documented home improvements (like a kitchen renovation or an addition) may help boost your appraised value 

If your home’s value has increased significantly, an updated appraisal could help you cross the 20% equity mark earlier, saving you money every month.

If you think you qualify, here’s what to do:  

• Contact your lender or mortgage servicer: Ask for their PMI removal process and eligibility requirements
• Confirm your current loan balance and LTV: You can calculate this by dividing your loan balance by your home’s value  
• Gather your payment history: Some lenders may ask for verification of on-time payments  
• Request an appraisal if needed: If your lender allows PMI removal based on current market value, they’ll specify appraisal guidelines  
• Submit a written request: This request would formally ask for a PMI cancellation.  
• Wait for lender review and confirmation: They’ll provide a written response once your PMI is removed  

 This process is common, straightforward and clearly regulated. If you’re exploring new home financing or looking to refinance to remove PMI, remember that Citi’s home loans offer a range of mortgages to fit different financial needs.

Yes! A few smart financial moves can help you reach that equity threshold faster. Some things you might try: 

• Make extra payments toward principal: Even a few hundred dollars per year can accelerate paying your mortgage down enough to qualify  
• Recast your mortgage: This can happen after a large lump-sum payment (such as from a bonus or inheritance)  
• Maintain strong credit: Lenders are more likely to approve early removal when you have a solid payment history  
• Track local home price trends: Rising property values can push your equity higher faster than expected
• Consider refinancing: If interest rates have dropped or your credit has improved, refinancing may eliminate PMI entirely while lowering your rate

Sometimes, PMI sticks around longer than you’d like. Here are some common reasons why: 

• Late or missed payments disqualify you from early removal
• Declining property value based on a new appraisal
• High-risk loan classification, such as a recent delinquency or modification
• Insufficient equity, even if your payments are current

  If your lender denies removal, they must explain why and what steps are required to requalify, usually improving payment consistency or re-establishing equity through additional payments or rising values.