Guide
How to get rid of PMI by refinancing
Refinance into a conventional loan with a loan-to-value of 80% or less, and the new loan typically has no mortgage insurance. In our example ($280,000 owed on a $380,000 home, 73.7% LTV) the monthly payment would rise by $25 at this week's 7.11% average.
Last reviewed November 13, 2026 · Examples use this week's rates
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Step 1: check your LTV
Divide your loan balance by your home's current value. At 80% or below you generally qualify for a conventional loan without PMI. Rising home values can get you there faster than paying down principal.
Step 2: see if you can cancel without refinancing
On a conventional loan, you can generally ask your servicer to cancel PMI once you reach 80% of the original value, and it usually ends automatically at 78%. Some servicers allow removal based on a new appraisal. That costs far less than a refinance, so ask first.
Step 3: FHA borrowers
Many FHA loans carry MIP for the life of the loan, so refinancing to conventional is often the main way out. Compare the MIP you'd drop with any change in rate.
Step 4: compare the full payment
The decision comes down to one number: today's principal, interest and mortgage insurance versus the new principal and interest. If today's rates are higher than yours, the rate increase can cancel out the savings. The calculator shows both, plus break-even on 2% closing costs.
Worked example at this week's rates
- Today: $1,679 principal and interest at 6% plus $180 PMI = $1,859. New 30-year at 7.11% with no PMI: $1,884. Break-even on $5,600 closing costs: not reached.
Rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Closing costs are estimated at 2% unless stated, and payments are principal and interest only.
Run your own numbers
Use the Remove PMI refinance calculator with your balance, rate and costs.
Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.
Frequently asked questions
- At what LTV does PMI go away?
- Conventional PMI can generally be cancelled on request at 80% of original value and usually ends automatically at 78%.
- Can I refinance an FHA loan to remove MIP?
- Yes, refinancing to a conventional loan at 80% LTV or less typically removes mortgage insurance.
- Do I need an appraisal?
- Most refinances use an appraisal to set the home's value, which determines your LTV.
- Is it worth refinancing just to remove PMI?
- Only if the PMI saved exceeds any rate increase and you'll keep the loan past break-even.
- Can home improvements help?
- Improvements that raise appraised value can lower your LTV, but the appraiser decides the value.