Conventional borrower-paid PMI can come off in two different ways. The Homeowners Protection Act path uses original value and scheduled amortization (commonly a request at 80% and automatic termination at 78% if the loan is current). Asking the servicer to cancel based on a new appraisal of current value is a separate overlay: seasoning, a tighter LTV test, and a paid appraisal. Snapshot as of 2026-08.
This page is how PMI already on a conventional loan can come off. It is not whether a first-time buyer should wait until they can put 20% down.
FHA annual MIP does not cancel the same way. Post-2013 MIP duration is timed from original LTV. A higher current value does not usually turn off annual MIP; refinancing out of FHA is the usual early exit conversation.
| Question | Original value (HPA path) | New appraisal (current value) |
|---|---|---|
| What value is used | Original purchase value (or the original appraised value used at origination). Scheduled principal paydown, not Zillow. | A new appraisal of current market value, ordered under the servicer/investor rules. Not automatic. |
| Typical trigger | For many borrower-paid conventional loans, you can request PMI cancellation at 80% of the original property value and the servicer typically must terminate automatically at 78% of original value if the loan is current. Those tests use original value and scheduled amortization — not today’s Zillow number. | A cancellation based on a new appraisal of current value is an investor/servicer path, not the HPA original-value clock. It usually needs seasoning, a current LTV test that can be tighter than 80% of original value, and a paid appraisal. It can be declined. It is not available on every product (lender-paid PMI is a common exception). |
| Who starts it | You can request cancellation at the 80% original-value mark. Automatic termination at 78% is a servicer duty on many borrower-paid loans if you are current. | You (or your servicer, if they allow it) request a current-value review. You usually pay for the appraisal. The investor can say no. |
| Not this path | This page is how PMI already on a conventional loan can come off. It is not whether a first-time buyer should wait until they can put 20% down. | FHA annual MIP does not cancel the same way. Post-2013 MIP duration is timed from original LTV. A higher current value does not usually turn off annual MIP; refinancing out of FHA is the usual early exit conversation. |
Lender-paid PMI, split-premium PMI, and some investor products do not follow borrower-paid HPA cancellation. USDA and VA use different fees, not monthly PMI.
Call the servicer with the right question
Ask whether they are measuring original value (HPA) or whether they even offer a current-value appraisal cancellation — and what seasoning they require. A “you have 22% equity on a website estimate” screenshot is not either test. Program overview: conventional loans.
If the loan is FHA
Stop. Annual MIP is timed from original LTV. Read how MIP vs PMI actually leaves the loan. A conventional refinance can be the early-exit conversation; run break-even after costs before you treat MIP savings as free.
Still deciding whether to put 20% down on a purchase?
That is should I wait for 20% down — a first-time cash-and-timeline question, not a servicer cancellation form.
What happens next
- Read the PMI disclosure and the note. Lender-paid PMI often cannot be cancelled the HPA way.
- Ask the servicer in writing: original-value percent remaining, and whether current-value cancellation exists on this product.
- Keep the loan current. HPA automatic termination typically requires that. Late payments are a different problem than a low appraisal.
Common questions
Keep going
What to do next
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures