AN OWNER’S GUIDE TO THE NEXT DECISION
PMI Questions & Your Next Mortgage Review
Check the loan before changing it.
Your balance is lower, your plans have changed or you have started wondering about mortgage insurance. That is a good reason to review the facts. It is not an automatic reason to refinance.
By Paul Cederholm, NMLS #1697336, Cederholm Mortgage Advisors.
Start here
For eligible borrower-paid conventional PMI, ask the servicer about cancellation under the applicable rules. Compare that path with keeping or replacing the loan. FHA mortgage insurance and other structures have different requirements.
Three paths to examine
Keep
A loan that still fits
Ask
Servicer review of PMI
Compare
New financing only if useful
Identify the kind of mortgage insurance first.
Find your loan program, origination details and insurance structure first. Conventional borrower-paid PMI, lender-paid coverage and FHA mortgage insurance follow different rules.
Requesting cancellation and automatic termination are different
- Request at 80%: For many covered loans, you can request cancellation when the balance is scheduled to reach 80% of original value, or reaches that level early through extra payments. Requirements include a written request, good payment history, current payments, no junior liens and evidence that value has not declined.
- Scheduled 78% termination: PMI generally ends automatically when the balance is scheduled to reach 78% of original value, if payments are current.
- Midpoint review: Covered PMI must also end after the midpoint of the original amortization schedule if payments are current.
Original value generally means the lower of the purchase price or original appraised value; after refinancing, it generally means the appraisal at that refinance. Ask your servicer which rules apply. Current-value investor rules are a separate path with their own conditions.
Read the CFPB guidance on PMI cancellation and termination.
Make your next mortgage review useful
Bring your current statement, mortgage insurance details, any second lien and your expected timeline. Cederholm Mortgage Advisors can help compare keeping the loan, asking the servicer about PMI or exploring new financing when it fits your goals. Your servicer decides cancellation eligibility and required evidence. Together, we can identify the next step worth reviewing before you pay for a valuation or a new loan.
The button opens our secure loan inquiry. Prefer a conversation first? Call 303-931-6798 or contact our team. Share documents only through the secure channel we provide.
Appreciation is a question to investigate, not an automatic cancellation.
A website value estimate is not a servicer-approved valuation. Some investor rules provide a current-value path with additional conditions. Ask before paying for an appraisal or other valuation that the servicer may not accept.
A new second lien, payment history, occupancy or the age of the loan can affect the review. Request the explanation in writing so you know what is being evaluated.
Compare the cost of changing the loan.
| Option | What to compare |
|---|---|
| Keep current loan | Remaining term, payment, insurance and expected balance. |
| Ask about PMI cancellation | Eligibility, required evidence, valuation cost and servicer process. |
| Refinance | New costs, term, payment, insurance and balance over your expected timeline. |
A lower payment can come from extending the repayment period. Compare total cost and balance as well as the monthly number. A refinance also has to meet current qualifications.
Bring a short set of facts to the review.
- Current statement and program details.
- Any second mortgage or HELOC.
- Your payment and mortgage insurance amount.
- Expected time in the home and goals for the next few years.
- Any notices or written guidance already received from the servicer.
Cederholm Mortgage Advisors can help connect these details to a practical next step: ask the servicer about your current loan, keep the financing you have, or review a change when it supports your goals.
Questions worth asking
Does reaching 20% equity automatically remove PMI?
No. The applicable cancellation path, value basis and conditions matter. Confirm them with the servicer.
Is FHA MIP the same as conventional PMI?
No. FHA mortgage insurance follows different rules, including factors such as original terms and case timing. Ask about your specific loan.
Can Cederholm Mortgage Advisors cancel my PMI?
Your servicer administers cancellation. We can help frame the financing comparison and identify questions to ask.
Sources and information
Information is educational and is not a loan offer, rate quote, approval or commitment to lend. Programs, costs and qualification requirements depend on the borrower, property, selected lender and current guidelines. Hypothetical examples are not client testimonials or guaranteed results.
Let’s make your next step clearer.
Your balance is lower, your plans have changed or you have started wondering about mortgage insurance. That is a good reason to review the facts. It is not an automatic reason to refinance.
Ask the servicer about the loan you actually have
Mortgage insurance review depends on the loan type and applicable conditions. Use this worksheet before paying for a valuation or replacing the mortgage.
| What to record | Your notes |
|---|---|
| Loan and insurance type | Identify conventional borrower-paid PMI, FHA mortgage insurance or another structure. |
| Loan details | Origination date, original value information, current balance and payment history. |
| Property and other liens | Note occupancy and any second mortgage or HELOC. |
| Written servicer requirements | Ask which cancellation path, evidence, valuation and fees apply. |
| Alternative comparison | Compare the cost of requesting cancellation with keeping or refinancing the loan. |
We can help compare the financing choices, but Cederholm Mortgage Advisors cannot cancel PMI on the servicer’s behalf. Bring any written requirements you have already received.
Read more: CFPB guidance on requesting PMI cancellation.
What happens next? The button below opens our secure loan inquiry. Tell us your goal and timing so we can discuss the relevant costs, documents and options. Prefer a conversation first? Call 303-931-6798 or contact our team. Share sensitive documents only through the secure channel we provide. A conversation is not a loan approval or commitment.