Guide
Automatic PMI termination at 78 percent original value
Understand automatic PMI termination under the Homeowners Protection Act, including the 78 percent original value test, current payment status, and subordinate lien rules.
Original value, not Zillow value
Automatic termination is based on the original value of the property used at origination, not a current online estimate. When scheduled unpaid principal hits 78 percent of that original value, PMI must terminate if you are current.
Why people miss it
If you made extra principal payments, you may reach 78 percent sooner than the original schedule. If you did not tell the servicer, the automatic date on their system might still follow the original schedule. A letter that shows the actual balance helps.
Subordinate liens
A second mortgage or HELOC can delay automatic termination until it is released. If you have a home equity line, ask whether it blocks termination and what documentation the servicer needs.
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