What we verified in “Mortgage insurance: PMI vs. MIP, and when it ends”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the CFPB, mortgage insurance of any kind protects the lender, not you, if you fall behind; borrowers who put down less than 20% typically pay for it; it is also typically required on FHA and USDA loans; it increases the cost of your loan; and it is included in your monthly payment, your closing costs or both.

   Sources 1 · What is mortgage insurance and how does it work?: 'Typically, borrowers making a down payment of less than 20 percent of the purchase price of the home need to pay for mortgage insurance'; 'also is typically required on Federal Housing Administration (FHA) and U.S. Department of Agriculture (USDA) loans'; 'it increases the cost of your loan'; 'Mortgage insurance, no matter what kind, protects the lender – not you' · Checked October 31, 2026

2. According to the CFPB, on a conventional loan PMI comes from a private company and its rate varies with the down payment and credit score; on an FHA loan the premiums go to FHA, cost the same regardless of credit score and include an upfront cost in closing costs and a monthly cost; on a USDA loan you pay for the insurance at closing and in your monthly payment; and on a VA loan the VA guarantee replaces mortgage insurance, there is no monthly premium and you pay an upfront funding fee.

   Sources 1 · What is mortgage insurance and how does it work?, 'Loan types and mortgage insurance': 'Private mortgage insurance (PMI) rates vary by down payment amount and credit score'; 'It costs the same no matter your credit score'; 'both an upfront cost, paid as part of your closing costs, and a monthly cost'; USDA: 'You pay for the insurance both at closing and as part of your monthly payment'; VA: 'the VA guarantee replaces mortgage insurance'; 'there is no monthly mortgage insurance premium' · Checked October 31, 2026

3. According to the CFPB, the most common way to pay PMI is a monthly premium added to your payment and shown on page 1 of the Loan Estimate and Closing Disclosure under Projected Payments; sometimes it is a one-time upfront premium at closing, shown on page 2, section B, and if you then move or refinance you might not get that premium back; and some lenders offer conventional loans without PMI in exchange for a higher interest rate.

   Sources 2 · What is private mortgage insurance?: 'The most common way to pay for PMI is a monthly premium'; 'shown on your Loan Estimate and Closing Disclosure on page 1, in the Projected Payments section'; 'page 2, in section B'; 'If you make an up-front payment and then move or refinance, you might not be entitled to a refund of the premium'; 'Lenders sometimes offer conventional loans with smaller down payments that do not require PMI. As a tradeoff, you usually pay a higher interest rate' · Checked October 31, 2026

4. According to the CFPB, these PMI removal rights apply to single-family principal-residence mortgages that closed on or after July 29, 1999; FHA and VA loans have different requirements; different rules apply if the lender pays for the insurance; and 'original value' generally means the lower of the contract price or the appraised value when you bought, or the appraised value at refinancing if you refinanced.

   Sources 3 · When can I remove private mortgage insurance (PMI) from my loan?: 'mortgages for single-family principal residences that closed on or after July 29, 1999'; 'Mortgages through the Federal Housing Administration (FHA) or Department of Veterans Affairs (VA) have different requirements'; 'If your lender is paying for your mortgage insurance, different rules apply'; '“original value” generally means either the contract sales price or the appraised value of your home at the time you purchased it, whichever is lower' · Checked October 31, 2026

5. According to the CFPB, you can ask to cancel PMI on the date your balance is scheduled to fall to 80% of your home's original value, or earlier if extra payments brought it there; the first date you can ask should appear on the PMI disclosure you got with your loan; and the servicer is legally required to grant the request if you ask in writing, have a good payment history and are current, certify there are no junior liens (such as a second mortgage) and show, for example with an appraisal, that the value has not declined below the original value.

   Sources 3 · When can I remove private mortgage insurance (PMI) from my loan?, 'Can I request cancellation of my PMI when my principal balance is 80 percent of the home’s original value?': 'The first date you can make the request should appear on your PMI disclosure form'; 'if you have made additional payments'; 'Your servicer is legally required to grant your request'; 'You make your request in writing'; 'no junior liens (such as a second mortgage)'; 'evidence (for example, an appraisal)' · Checked October 31, 2026

6. According to the CFPB, even if you do not ask, the servicer generally must end PMI automatically on the date your balance is scheduled to reach 78% of the original value, if you are current, or shortly after you catch up if you are not; and it must end PMI the month after you reach the midpoint of the loan's amortization schedule (after 15 years on a 30-year loan), even if the balance has not reached 78%.

   Sources 3 · When can I remove private mortgage insurance (PMI) from my loan?: 'your servicer must automatically terminate PMI on the date when your principal balance is scheduled to reach 78 percent'; 'PMI will not be terminated until shortly after your payments are brought up to date'; 'must end the PMI the month after you reach the midpoint of your loan’s amortization schedule'; 'For 30-year loans, the midpoint is after 15 years have passed' · Checked October 31, 2026

7. According to the CFPB, loan investors such as Fannie Mae and Freddie Mac often set their own PMI cancellation guidelines, but those guidelines cannot be less favorable to the borrower than the legal ones.

   Sources 3 · When can I remove private mortgage insurance (PMI) from my loan?, 'Can my PMI be canceled earlier if I have a loan backed by Freddie Mac or Fannie Mae?': 'often create their own PMI cancellation guidelines. But these guidelines cannot be less favorable to the borrower' · Checked October 31, 2026

8. Under the Homeowners Protection Act (12 U.S.C. §4902(a)), PMI is canceled when the borrower asks the servicer in writing, has a good payment history, is current and meets the holder's requirements for evidence that the property's value has not declined below the original value and a certification that the borrower's equity is not encumbered by a subordinate lien.

   Sources 5 · 12 U.S.C. §4902(a)(1)–(4): 'submits a request in writing to the servicer'; 'has a good payment history'; 'is current on the payments'; 'the value of the property securing the mortgage has not declined below the original value'; 'unencumbered by a subordinate lien' · Checked October 31, 2026

9. Under the law's definition (12 U.S.C. §4901(4)), you have a 'good payment history' if you made no payment 60 or more days late during the 12-month period beginning 24 months before the cancellation date or your request, and no payment 30 or more days late during the 12 months before that date.

   Sources 4 · 12 U.S.C. §4901(4), Good payment history: '60 days or longer past due during the 12-month period beginning 24 months before'; '30 days or longer past due during the 12-month period preceding' · Checked October 31, 2026

10. Under the law (12 U.S.C. §4901(2) and (18)), on a fixed-rate loan the cancellation date is, at the borrower's option, the date the balance is first scheduled to reach 80% of the original value or the date it actually reaches 80% through payments; and the termination date is the date the balance is first scheduled to reach 78% of the original value under the initial amortization schedule.

    Sources 4 · 12 U.S.C. §4901(2)(A): 'first scheduled to reach 80 percent of the original value'; 'based solely on actual payments, reaches 80 percent'; §4901(18)(A): 'first scheduled to reach 78 percent of the original value of the property' · Checked October 31, 2026

11. Under the law (12 U.S.C. §4902(b) and (c)), PMI terminates on the termination date if you are current that day; if not, on the first day of the first month after you become current; and in no case may it be required beyond the first day of the month after the midpoint of the loan's amortization period, if you are current.

    Sources 5 · 12 U.S.C. §4902(b)(1)–(2): 'on the termination date if, on that date, the mortgagor is current'; 'on the first day of the first month beginning after the date that the mortgagor becomes current'; §4902(c): 'beyond the first day of the month immediately following the date that is the midpoint of the amortization period' · Checked October 31, 2026

12. Under the law (12 U.S.C. §4902(e) and (f)), once PMI is canceled or terminated, no premiums may be required more than 30 days after the applicable date, and the servicer must return unearned premiums no later than 45 days after cancellation or termination.

    Sources 5 · 12 U.S.C. §4902(e): 'No payments or premiums may be required'; 'more than 30 days after'; §4902(f)(1): 'Not later than 45 days after the termination or cancellation'; 'all unearned premiums for private mortgage insurance shall be returned to the mortgagor by the servicer' · Checked October 31, 2026

13. Under the law (12 U.S.C. §4902(g)), borrower cancellation and automatic termination do not apply to loans that had high risks when they closed, as determined under Fannie Mae and Freddie Mac guidelines (for loans within the conforming limit) or by the lender (for other loans).

    Sources 5 · 12 U.S.C. §4902(g)(1): 'The termination and cancellation provisions in subsections (a) and (b) do not apply to any residential mortgage transaction that, at the time at which the residential mortgage transaction is consummated, has high risks' · Checked October 31, 2026

14. Under the law (12 U.S.C. §4903(a)(3)), if your loan requires PMI, the servicer must send you an annual written statement of your rights to cancel or terminate PMI, with an address and phone number to ask whether you may cancel.

    Sources 6 · 12 U.S.C. §4903(a)(3), Annual disclosures: 'an annual written statement'; 'the rights of the mortgagor under this chapter to cancellation or termination'; 'an address and telephone number' · Checked October 31, 2026

15. Under the law (12 U.S.C. §4905), the cancellation and termination rules do not apply to lender-paid mortgage insurance; the lender must tell you that the borrower cannot cancel it, that it usually comes with a higher interest rate and that it ends only when the loan is refinanced, paid off or otherwise terminated.

    Sources 7 · 12 U.S.C. §4905(b): 'Sections 4902 through 4904 of this title do not apply in the case of lender paid mortgage insurance'; (c)(1)(A): 'lender paid mortgage insurance may not be canceled by the mortgagor'; (c)(1)(B): 'usually results in a residential mortgage having a higher interest rate'; 'terminates only when the residential mortgage is refinanced'; 'paid off, or otherwise terminated' · Checked October 31, 2026

16. On Fannie Mae loans you can ask to remove mortgage insurance based on the home's current value; for a one-unit principal residence the balance must be 75% or less of current value if the loan is two to five years old, or 80% or less if it is more than five years old; if improvements you made raised the value, the two-year minimum can be waived at 80% or less; for a two- to four-unit principal residence it must be 70% or less and the loan more than two years old; the value is checked with a valuation that inspects inside and out; and the servicer may not solicit you for it: you have to ask.

    Sources 8 · Servicing Guide B-8.1-04, 'Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Current Value of the Property': 'The servicer must not solicit a borrower'; 'an inspection of both the interior and exterior'; '75% or less, if the seasoning of the mortgage loan is between two and five years'; '80% or less, if the seasoning of the mortgage loan is greater than five years'; 'minimum two-year seasoning requirement is waived because the property improvements'; '70% or less and the seasoning of the mortgage loan must be greater than two years' · Checked October 31, 2026

17. On Fannie Mae loans, to remove insurance based on current value you must be current, with no payment 30 or more days late in the last 12 months and none 60 or more days late in the last 24; improvements such as kitchen or bathroom renovations or added square footage can count, but maintenance repairs do not; and if you are denied, the servicer must give you the reasons, including the valuation results, within 30 days.

    Sources 8 · Servicing Guide B-8.1-04: 'has no payment 30 or more days past due in the last 12 months'; 'has no payment 60 or more days past due in the last 24 months'; 'kitchen and bathroom renovations and/or the addition of square footage'; 'Repairs that are made to keep the property maintained and fully functional are not considered improvements'; 'provide the reasons for denial, including the results of the BPO or appraisal'; 'within 30 days' · Checked October 31, 2026

18. According to HUD Handbook 4000.1 (MIP chart in effect since March 20, 2023), FHA's upfront premium (UFMIP) is 1.75% of the base loan amount; on a loan of more than 15 years with a base amount at or below HUD's threshold, the annual premium is 50 basis points for 11 years at a loan-to-value of 90% or less, 50 basis points for the mortgage term above 90% and up to 95%, and 55 basis points for the mortgage term above 95%; on a loan of 15 years or less with that amount, it is 15 basis points for 11 years at 90% or less and 40 basis points for the mortgage term above 90%.

    Sources 9 · Handbook 4000.1 (last revised August 12, 2026), Appendix 1.0 – Mortgage Insurance Premiums (03/20/2023), p. 1749: 'All Mortgages: 175 Basis Points (bps) (1.75%) of the Base Loan Amount'; 'Mortgage Term of More Than 15 Years': '≤ 90.00% 50 11 years'; '> 90.00% but ≤ 95.00% 50 Mortgage term'; '> 95.00% 55 Mortgage term'; 'Mortgage Term of Less than or Equal to 15 Years': '≤ 90.00% 15 11 years'; '> 90.00% 40 Mortgage term' · Checked October 31, 2026

19. According to HUD Handbook 4000.1, FHA's periodic premium is an annual premium payable monthly; its amount is based on the loan-to-value ratio, the base loan amount and the term; and the upfront premium is not refundable except when you refinance into a new FHA-insured loan.

    Sources 9 · Handbook 4000.1, II.A.2, 'ii. Annual (or Periodic) Mortgage Insurance Premium', p. 182: 'The periodic MIP is an annual MIP that is payable monthly'; 'based on the LTV ratio, Base Loan Amount and the term of the Mortgage'; '(B) Refund and Credit of Upfront Mortgage Insurance Premium': 'The UFMIP is not refundable, except in connection with the refinancing to a new FHA-insured Mortgage' · Checked October 31, 2026

20. According to HUD Handbook 4000.1, if you refinance your FHA loan into another FHA loan within 3 years, a refund credit lowers the new loan's upfront premium, on a schedule that starts at 80% in the first month and falls each month to 10% in the last month of the third year.

    Sources 9 · Handbook 4000.1, Refinances, 'iv. Upfront Mortgage Insurance Premium Refunds', p. 435–436: 'refinancing their current FHA-insured Mortgage to another FHA-insured Mortgage within 3 years, a refund credit is applied'; refund table, Year 1 month 1 '80', Year 3 month 12 '10' · Checked October 31, 2026

21. According to the CFPB, the requirement to buy PMI usually also applies when you refinance a conventional loan and your equity is less than 20% of the home's value.

    Sources 2 · What is private mortgage insurance?: 'The requirement to buy PMI usually also applies to refinancing a conventional loan, when your equity is less than 20 percent of the value of your home' · Checked October 31, 2026

22. The CFPB takes complaints about financial products and services, including mortgages, and sends them to companies for a response.

    Sources 10 · Submit a complaint: 'Submit a complaint about a financial product or service'; 'We currently accept complaints about'; 'Mortgages'; 'Most companies respond within 15 days' · Checked October 31, 2026

23. According to the CFPB, the counseling agencies in its search tool are approved by HUD and offer independent advice, often at little or no cost, on buying a home, renting, defaults, forbearances, foreclosures and credit; you search by ZIP code; and not every agency offers every service.

    Sources 11 · Find a Housing Counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD)'; 'offer independent advice, often at little or no cost to you'; 'buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'Search by ZIP code'; 'Not every housing counselor offers all services' · Checked October 31, 2026