Guide
Can Home Appreciation Get Rid of PMI?
When rising home values can help you cancel private mortgage insurance, the 80% and 78% rules, Fannie Mae's current-value guidelines, and how to check your region's appreciation.
Last updated 2026-09-30
The rules that apply to every conventional loan
Under federal rules summarized by the Consumer Financial Protection Bureau, for most conventional mortgages on a principal residence closed on or after July 29, 1999, you can ask your servicer in writing to cancel PMI once your principal balance is scheduled to reach, or you have paid it down to, 80% of the home's original value. You need a good payment history, no junior liens, and may need to show the home's value has not fallen below its original value.
PMI must end automatically when the balance is scheduled to reach 78% of the original value, provided you are current, and no later than the month after the midpoint of the loan's term. Original value generally means the lower of the purchase price or the appraised value at purchase.
Those federal rules are based on the original value. Appreciation does not change them, but it can open a second path.
Where appreciation helps: current-value cancellation
Loan investors such as Fannie Mae and Freddie Mac may allow PMI to be cancelled based on the home's current value. Fannie Mae's servicing guide, for example, allows borrower-requested termination on a one-unit principal residence when the loan-to-value ratio based on current value is 75% or less for loans seasoned two to five years, or 80% or less for loans seasoned more than five years, along with an acceptable payment record and a valuation the servicer accepts.
If the increase in value comes from improvements you made, Fannie Mae can waive the two-year seasoning requirement, with an 80% limit. Freddie Mac and individual servicers set their own requirements, so ask your servicer for its exact terms before ordering an appraisal.
FHA and VA loans follow different rules. FHA mortgage insurance generally cannot be removed with a new appraisal; borrowers often look at refinancing into a conventional loan instead, which has its own costs.
How much appreciation is enough?
Ignoring principal paydown, a home bought with 10% down reaches 75% loan-to-value after the value rises 20%, and 80% after it rises 12.5%. With 5% down, the thresholds are 26.7% and 18.75%. Principal payments lower the required appreciation further, so your actual number depends on your balance today.
Regional appreciation is a screening tool, not proof. Your servicer will rely on an appraisal or its own valuation of your specific home. Check your 3-digit ZIP region's growth since you bought to judge whether an appraisal is likely to be worth its cost.
Live data · FHFA HPI® through Q2 2026
Has your region appreciated enough?
Share of 3-digit ZIP regions whose index has risen at least as much as common PMI thresholds since a purchase 2, 3, or 5 years ago. Thresholds ignore principal paydown: 12.5% and 20% correspond to 10% down reaching 80% and 75% loan-to-value; 18.75% and 26.7% to 5% down.
| Bought in | U.S. change | Regions up ≥12.5% | Regions up ≥18.75% | Regions up ≥20% | Regions up ≥26.7% |
|---|---|---|---|---|---|
| Q2 2024 | +6.9% | 142 of 882 | 0 of 882 | 0 of 882 | 0 of 882 |
| Q2 2023 | +12.9% | 618 of 882 | 246 of 882 | 199 of 882 | 15 of 882 |
| Q2 2021 | +41.3% | 877 of 882 | 867 of 882 | 863 of 882 | 820 of 882 |
Frequently asked questions
- Can I remove PMI because my home's value went up?
- Often, if your loan's investor or servicer allows current-value cancellation. Fannie Mae, for example, generally requires a loan-to-value ratio of 75% or less for loans two to five years old, or 80% or less after five years, based on a valuation it accepts. Federal cancellation rights at 80% and 78% are based on original value.
- Does FHA mortgage insurance work the same way?
- No. FHA and VA loans have different rules, and FHA mortgage insurance generally cannot be removed with a new appraisal. Ask your servicer about your loan's terms.