The short answer
The fastest ways to get rid of PMI early are extra principal payments and a new appraisal after your home gains value. On a $360,000 loan at 6.5% with $150 a month in PMI, an extra $200 a month gets you to the 80% line in 5 years and 4 months instead of 7 years and 11 months, saving about $6,750 in PMI. Whichever method you use, cancellation at 80% only happens if you ask for it in writing.
Why getting rid of PMI early is worth the effort
PMI is one of the few costs in homeownership that buys you nothing. It protects your lender. Once you've got enough equity in your home to remove it, every month you keep paying is pure waste.
And it adds up. On our example, a $400,000 home with 10% down and PMI at $150 a month, waiting for automatic cancellation means paying PMI for 9 years and 1 month. That's $16,350.
Here are five ways to cut that number, ranked from most to least powerful for most homeowners.
1. Make extra principal payments
Extra payments lower your balance faster, so you cross 80% of your original value sooner.
| Extra each month | Reach 80% after | PMI paid | PMI saved vs. waiting for 78% |
|---|---|---|---|
| None, request at 80% | 7 years, 11 months | $14,250 | $2,100 |
| $100 | 6 years, 5 months | $11,550 | $4,800 |
| $200 | 5 years, 4 months | $9,600 | $6,750 |
| $500 | 3 years, 8 months | $6,600 | $9,750 |
| $1,000 | 2 years, 5 months | $4,350 | $12,000 |
The PMI savings are only half the story. Those same extra payments also save interest for the rest of the loan. An extra $200 a month on this loan saves about $108,900 in interest over its life. See extra mortgage payments for the full picture.
One rule to remember: the automatic 78% cancellation is based on your original schedule, not your actual balance. If you pay extra, you must request cancellation yourself. More on that in when PMI comes off automatically.
Want to know your exact date with extra payments? A free payoff projection calculates it.
2. Get a new appraisal
If your home has gained value, your loan may already be small enough compared with today's value. Many loans backed by Fannie Mae and Freddie Mac allow cancellation based on current value when:
- The loan is between 2 and 5 years old and the balance is 75% or less of current value, or
- The loan is more than 5 years old and the balance is 80% or less of current value.
On our $360,000 loan, the balance after 3 years is about $347,100. To qualify at 75%, the home would need to appraise for about $462,800. That's roughly 16% above the $400,000 purchase price. In a rising market, that's very possible. See whether a new appraisal can remove PMI.
3. Request cancellation at 80%, not 78%
The cheapest method of all costs a letter. Ask your servicer for your scheduled 80% date and send a written request that month. On our example, that alone saves 14 months of PMI, about $2,100.
4. Make improvements that add value
Some lenders count value added by significant improvements, like a finished basement or a new addition, when you request removal based on current value. Ask your servicer how they handle improvements before you plan around it. Repainting and routine repairs usually don't count.
5. Refinance
If interest rates have dropped and your new loan would be 80% or less of your home's current value, refinancing can eliminate PMI along with lowering your rate. But refinancing for PMI alone rarely pays off, because closing costs often run 2% to 5% of the loan. See does refinancing get rid of PMI.
The requirements for removal
Whichever path you take, your servicer will usually require:
- A written request
- A good payment history, typically no 30-day late payments in the past year and no 60-day late payments in the past two years
- No second mortgage on the home
- Proof the home hasn't lost value, often an appraisal you pay for
Call your servicer before you start. Requirements vary, and knowing them up front avoids a rejected request.
Don't skip the safety net
Paying extra to remove PMI is smart. Paying extra with your emergency fund isn't. Keep three to six months of expenses in savings first. And if you're carrying credit card debt at 20% or more, the Zero Debt Method is built to clear that first.
What happens next
Once PMI is gone, keep the momentum. Send the money you were paying for PMI straight to principal. See what to do once PMI ends, or every option in PMI explained.
And if you want to see what's possible beyond PMI, Ridgewell's Mortgage Accelerator Program is designed to help qualifying households pay off a home in as little as 5 to 7 years.
Payoff timelines are illustrations for qualifying households and are not guaranteed.
Where to start
Call your servicer this week and ask three questions: What's my original value? When is my loan scheduled to reach 80%? What do you require to cancel PMI? Then choose the fastest method that fits your budget.
To see your exact timeline, get a free payoff projection from a licensed agent.
Examples assume a $400,000 home, a $360,000 30-year fixed mortgage at 6.5%, and PMI of $150 a month, principal and interest only, figures rounded. Current-value cancellation rules described are common Fannie Mae and Freddie Mac guidelines. Your lender's rules may differ.
