FAQs

How do I delete PMI?

Getting rid of Private Mortgage Insurance (PMI) is a great milestone! There are two ways PMI can be removed from your loan: it will either fall off automatically over time, or you can formally request to have it canceled early.

1. Automatic Termination

You don’t need to do anything for this to happen. By law, Pennymac will automatically terminate your PMI on the date your principal balance is scheduled to reach 78% of your home’s original value (as long as your payments are current).

2. Requesting Early Cancellation

If you don’t want to wait for automatic termination, you can request early cancellation if you meet certain requirements. You can base this request on either:

• Your home’s original value: You can request cancellation once your loan balance drops to 80% of what the home was worth when you bought it.
• Your home’s current value: If your property value has increased (due to market conditions or major home improvements), you may be able to cancel PMI earlier. Note: Different loan investors have varying equity requirements for this route.

General requirements for early cancellation:

Regardless of which path you choose, you will generally need to meet the following criteria:

• A good payment history: No late payments within a specific timeframe.
• No “junior liens”: This means you don’t have a second mortgage, home equity loan, or HELOC attached to the property.
• Property valuation: You may be required to pay for a new appraisal or a Broker Price Opinion (BPO) to verify your home’s current value.

How to start your cancellation request:

Because exact requirements depend on your specific loan details and investor, the fastest way to find your path to PMI removal is to contact us:

• Online: Log into your Pennymac account and initiate a deletion request via our Secure Message Center.
• By Phone: Call us at 800.777.4001 to speak directly with a representative about your specific loan.