By the end of this guide you’ll know exactly how to request PMI removal from your servicer, what proof of equity you need, and when refinancing beats a removal request. You’ll need your most recent mortgage statement, an estimate of your home’s current value, and your original loan amount handy before you start. If you’re carrying private mortgage insurance on a conventional loan somewhere between Glen Allen and Short Pump, this walks through the exact steps to get it dropped, or to know when it won’t drop yet.
Written by Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205
Step 1: Confirm Your Loan Type and PMI Terms
PMI removal rules only apply to conventional loans. This distinction trips up a lot of homeowners. FHA loans carry mortgage insurance premium (MIP), which follows a different set of rules and, in most cases, only goes away through a refinance rather than a cancellation request. VA loans don’t have PMI or MIP at all; they carry an upfront funding fee instead, so there’s nothing to remove. If you’re not sure which bucket you’re in, your monthly statement or closing disclosure will say “PMI” or “MIP” explicitly, or you can ask your servicer directly.
Once you’ve confirmed you have a conventional loan, pull your original amortization schedule and PMI disclosure, both of which your servicer is required to have given you at closing under the Homeowners Protection Act. That disclosure lists your automatic termination date, the point at which PMI is scheduled to fall off on its own based on your original loan balance.
Here’s the mistake we see most often: homeowners assume PMI disappears automatically the moment their loan balance hits 78% of the original value, without checking that their payment history is clean. Automatic termination only happens on schedule if you’re current. If you’ve had a late payment in the past year, or you’re behind now, your servicer can and will push that termination date back. Check your payment history in the servicer portal before you count on any date they’ve given you.
Step 2: Calculate Your Current Loan-to-Value Ratio
Your loan-to-value ratio, or LTV, is your remaining loan balance divided by your home’s value. This single number determines whether you’re eligible for removal, and which removal path applies.
Here’s a worked example. Suppose a homeowner in Glen Allen bought a house for $380,000 with a $361,000 loan. A few years of payments later, the balance is down to $335,000. Comparable sales in the neighborhood suggest the home would now appraise around $420,000. The math: $335,000 divided by $420,000 equals 79.8% LTV. That’s close enough to the 80% threshold that a borrower-requested cancellation is worth pursuing now, and automatic termination at 78% likely isn’t far behind even without any action.
The value you use matters as much as the balance. For an accurate estimate, look at recent closed sales in your specific pocket of Henrico County, whether that’s Short Pump, Twin Hickory, or Wyndham, rather than relying on a national home-value estimator. Those tools use broad algorithms that can miss local nuances, like a subdivision where lot premiums or finished walkout basements move prices more than the model accounts for. A local real estate agent or appraiser can usually give you a tighter number.
One more distinction worth knowing before you go further: automatic termination is calculated using your original home value from the appraisal at purchase, no matter what’s happened to the market since. Borrower-requested cancellation, on the other hand, can use either the original value or the current appraised value, whichever gets you to 80% sooner. In a market where home values have climbed, as much of Henrico County’s has, that difference can move your removal date up by a year or more.
Step 3: Decide Between Automatic Termination and a Borrower-Requested Cancellation
There are two distinct paths off PMI, and knowing which one applies to your situation saves you from unnecessary paperwork or unnecessary waiting.
Automatic termination kicks in once your loan balance reaches 78% of the original value, based strictly on your original amortization schedule, and it happens without you lifting a finger, as long as you’re current on payments. Borrower-requested cancellation can happen earlier, once you hit 80% LTV, but it requires you to actually submit a written request, and your servicer will typically want a current appraisal rather than taking your word for the current value.
The differences break down like this:
- Trigger point: automatic termination at 78% LTV; borrower-requested cancellation at 80% LTV.
- Value used: automatic termination uses original value only; borrower-requested cancellation can use original or current appraised value.
- Appraisal required: not required for automatic termination; typically required for borrower-requested cancellation.
- Who initiates it: automatic termination happens without action from you; borrower-requested cancellation requires a written request you submit.
If your equity has grown quickly, say from a home renovation or a strong run-up in your neighborhood’s values, borrower-requested cancellation is usually the faster route. If your equity is building gradually through regular payments and you’re not in a hurry, automatic termination will get there on its own, just later.
Step 4: Order an Appraisal or Broker Price Opinion
Once you’ve decided a borrower-requested cancellation makes sense, the next hurdle is proving your home’s current value to your servicer’s satisfaction. Most servicers require a licensed appraisal, not a home-value estimate from a real estate website, and some maintain a list of appraisal companies or appraisal management companies they’ll accept. Call your servicer before you order anything and ask specifically what they require and whether they have a preferred vendor list.
Budget somewhere in the range of $400 to $650 for a standard single-family appraisal in the Richmond metro area as of 2026, though this varies by property size, complexity, and the appraiser’s availability. Confirm the requirement and the cost in writing with your servicer before you spend the money, since some servicers will only accept an appraisal they order themselves, and paying for your own upfront could mean paying twice.
If you’ve made improvements since purchase, mention them to the appraiser. A finished basement, an updated kitchen, or an added bathroom can meaningfully push your valuation higher, which matters if your LTV is sitting right on the edge of 80%. Cosmetic updates like paint or landscaping rarely move an appraised value enough to change your eligibility, so don’t count on those to close the gap. If the appraisal comes back lower than you expected, ask the appraiser what comparable sales they used, particularly if you have reason to believe recent sales in your immediate area, like River Road corridor or Lakeside, support a higher number.
Step 5: Submit a Written PMI Removal Request to Your Servicer
With your LTV calculated and your appraisal in hand, submit your request in writing. Most servicers publish a specific PMI cancellation form on their website or in the borrower portal, and using their form rather than a generic letter tends to move faster since it routes directly to the right department.
Your request package should include:
- Proof that your payment history is current, with no late payments in the past 12 months.
- Confirmation that there are no second liens, such as a home equity line of credit, that would affect your servicer’s combined loan-to-value calculation.
- Your appraisal documentation showing you’ve met the 80% LTV threshold.
- A clear statement of what you’re requesting and the effective date you’re asking for.
Servicers are generally expected to respond within a reasonable timeframe once they have a complete request, though exact windows vary by servicer and aren’t uniformly mandated for every scenario. If your request is denied, don’t just accept it. Ask specifically what disqualified you: an insufficient appraisal, a second lien they weren’t aware you’d have expected to be excluded, or a payment history issue. Often a second appraisal from a different vendor, or documentation clearing up a lien question, resolves the denial on a resubmission.
Step 6: Consider Refinancing if Removal Isn’t an Option Yet
If your LTV is still sitting above 80%, or your loan type doesn’t qualify for a standard cancellation request, refinancing into a new conventional loan is often the faster route to shedding PMI, provided your equity has grown enough to support it. A refinance resets your loan against your home’s current value, which can immediately drop you under the PMI threshold if the market has moved in your favor since your purchase.
This path shows up often for homeowners in Innsbrook and along the River Road corridor who are already refinancing for a better rate or pulling cash out for a renovation. In those cases, eliminating PMI comes along for the ride rather than being the sole reason for the refinance. Keep in mind that on a conventional cash-out refinance, the maximum loan-to-value is generally 90%, so there’s a ceiling on how much equity you can pull while still qualifying.
The tradeoff to weigh is refinance closing costs against your ongoing monthly PMI payment. If PMI is costing you $150 to $250 a month and refinancing would eliminate it while also shaving your rate, the math often favors refinancing within a couple of years. A broker who can check pricing across multiple wholesale lenders, rather than working off a single rate sheet, has more room to find a combination of rate and no-out-of-pocket closing options that fits your specific numbers, instead of a one-size offer.
Below is a general comparison of what to expect from a broker-sourced refinance versus a single-shelf lender offering only its own product line:
- Rate and program access: a broker can compare pricing across hundreds of wholesale lenders; a single-shelf lender can only offer its own rate sheet.
- Closing cost flexibility: a broker can shop for no-out-of-pocket closing options across multiple lenders; a single-shelf lender has one cost structure to offer.
- Local underwriting knowledge: a broker familiar with Henrico County appraisals and comparables can flag valuation issues early; a single-shelf lender’s underwriting is typically centralized and less locally attuned.
- Fallback options if declined: a broker can pivot to a different lender’s guidelines; a single-shelf lender has no alternative program to offer if you don’t fit their box.
Frequently Asked Questions About PMI Removal
What’s the difference between PMI and MIP? PMI applies to conventional loans and can be cancelled once you meet the equity thresholds described above. MIP applies to FHA loans and, in most cases, can’t be removed without refinancing into a different loan type.
Can I request removal before 80% LTV? No, 80% is generally the earliest point at which a borrower-requested cancellation is available, based on either original or current value.
Does the appraisal always have to be new? Yes, most servicers require a current appraisal reflecting your home’s present condition and market value, not the appraisal from your original purchase.
What if my home value dropped since purchase? You won’t qualify for early removal in that case, and you’ll need to wait for automatic termination, which occurs at 78% of your original value regardless of what happened to the market.
Do second mortgages or HELOCs affect eligibility? Yes, many servicers factor your combined loan balance, first mortgage plus any second lien, into the equity calculation, which can push your effective LTV higher than you expect.
How long does a removal request take? Timelines vary by servicer and by how complete your submission is. Ask for a written timeline when you submit your request so you know what to expect.
Is there a fee to request PMI removal? Some servicers pass along the cost of the appraisal, but there’s typically no separate administrative fee just for submitting the cancellation request itself.
Can refinancing remove PMI faster than requesting cancellation? Sometimes. If your loan type doesn’t qualify for standard cancellation, or your equity just crossed 80% after a market run-up and you also want a better rate, a refinance can accomplish both goals in one transaction.
What to Do Once Your Servicer Responds
Once you’ve confirmed your LTV, gathered your appraisal, and submitted your request, follow up with your servicer for written confirmation that PMI has been removed and that your monthly payment reflects the change. Keep that confirmation with your loan file. If your servicer denies the request or you’re not yet at the equity threshold, a refinance conversation is worth having sooner rather than later, especially if Henrico County home values, which have continued to climb according to Henrico County’s real estate assessment data, have already pushed your equity past what your original appraisal reflects.
Your dream home in Henrico County is closer than you think, and the same local knowledge that helps you time a PMI removal correctly also applies when you’re weighing a refinance. Discover exactly what you can afford with a credit-safe pre-qualification process that protects your score while unlocking your options. Get pre-qualified today and take the first step with a local mortgage broker who understands your community.