Two homeowners in Boca Raton can pay mortgage insurance every month and have completely different options for getting rid of it. One has a conventional loan with private mortgage insurance. The other has an FHA loan with an annual mortgage insurance premium.

The conventional borrower can usually ask to stop paying PMI once the balance reaches 80 percent of the home’s original value. The FHA borrower usually cannot, no matter how much the home has gone up in value.

That difference matters in South Florida, where values have moved a lot since many loans were written. A homeowner who bought a few years ago may have substantial equity today and still be paying mortgage insurance on the original terms. Here is how each system works in 2026.

The short version

Conventional PMI: you can request cancellation in writing at 80 percent of the home’s original value if you meet the servicer’s conditions. It ends automatically at 78 percent. Federal law also requires a final stop at the midpoint of the loan term.
FHA annual MIP: there is no borrower-requested cancellation based on equity. If you put 10 percent or more down, it ends after 11 years. If you put less down, it generally lasts the full loan term.
Rising value: appreciation does not trigger either rule on its own. It can help through a separate lender guideline that uses current value, or through a refinance.

Conventional PMI: the 80 percent request and the 78 percent automatic stop

Most conventional first mortgages closed on or after July 29, 1999 fall under the Homeowners Protection Act. The law sets a floor for when mortgage insurance has to come off, and it works on two tracks.

Borrower-requested cancellation at 80 percent. You have the right to ask your servicer to cancel PMI on the date your balance is scheduled to reach 80 percent of the home’s original value. You can also ask earlier if extra principal payments got you there sooner. Your servicer must grant the request if all of the following are true:

You make the request in writing.
You are current on your payments and have a good payment history.
You can certify that there are no junior liens on the property, such as a second mortgage or a HELOC.
You can provide evidence that the home’s value has not fallen below the original value. That usually means an appraisal.

Good payment history has a specific meaning under the law. Generally it means no payment 30 days or more late in the last 12 months, and no payment 60 days or more late in the 12 months before that.

Automatic termination at 78 percent. If you never ask, your servicer must still end PMI when your balance is scheduled to reach 78 percent of the original value. This is based on the original amortization schedule, not on what the home is worth now. If your payments are behind on that date, termination is delayed until you catch up.

Final termination at the midpoint. As a backstop, PMI must end at the midpoint of the loan’s amortization period. On a 30-year loan that is 15 years. In practice the 78 percent date usually arrives first.

What original value means. Generally it is the lower of the contract sales price or the appraised value at the time you bought the home. If you refinanced, it is the appraised value at the time of that refinance. That is an important detail for anyone who did a cash-out refinance during the recent run-up in prices.

Your home value went up. That alone does not remove PMI.

This is the most common misunderstanding we hear. The 80 and 78 percent tests use the original value and the original amortization schedule. A home that doubled in value does not speed up either date under the statute.

There is a second path, but it comes from investor guidelines rather than federal law. Fannie Mae and Freddie Mac allow cancellation based on current value when the loan has enough seasoning:

75 percent loan to value or less, with at least 2 years but less than 5 years since origination.
80 percent loan to value or less, once at least 5 years have passed.

Because this is a guideline and not a statute, your servicer has to process it, and most will require a current appraisal before accepting the value. Investment properties and 2 to 4 unit homes carry tighter thresholds, and some portfolio lenders set their own rules. If your loan is held by a bank or credit union rather than sold to Fannie or Freddie, ask that lender directly.

FHA MIP: usually for the life of the loan

FHA mortgage insurance is not PMI and does not follow the same cancellation rules. It has two parts. The upfront premium is 1.75 percent of the base loan amount, usually financed into the loan. The annual premium is paid monthly and depends on the loan term, the base loan amount, and the loan to value ratio at origination.

For 2026, the annual premium on a term over 15 years looks like this:

Base loan amount	LTV at origination	Annual MIP	How long it lasts
$832,750 or less	90% or less	0.50%	11 years
$832,750 or less	Over 90% to 95%	0.50%	Full loan term
$832,750 or less	Over 95%	0.55%	Full loan term
Over $832,750	90% or less	0.70%	11 years
Over $832,750	Over 90% to 95%	0.70%	Full loan term
Over $832,750	Over 95%	0.75%	Full loan term

Terms of 15 years or less have lower premiums, ranging from 0.15 percent to 0.65 percent. The $832,750 threshold tracks the national conforming loan limit, which is $832,750 for 2026. These rates come from HUD Mortgagee Letter 2023-05, which remains the current schedule, but HUD can revise premiums and thresholds. Your lender should confirm the exact rate and duration for your case number.

The duration rule is the part that surprises people. The 11 year clock depends on the loan to value ratio when the loan was insured, not on the balance today. If you bought with the minimum 3.5 percent down, your annual MIP generally stays for the life of the loan. Paying the balance down or watching the home appreciate will not end it. There is no written request process like conventional PMI, and no 78 percent automatic termination.

If you put 10 percent or more down, the annual premium ends automatically after 11 years. You do not need to apply, but it is worth checking your statements around that date to make sure it actually stopped.

Which one do you have?

Open your Closing Disclosure and look at the section for other costs. Conventional loans list Private Mortgage Insurance. FHA loans show an upfront Mortgage Insurance Premium at closing and an annual premium in the escrow section. An FHA case number on your paperwork is another clear sign. If you are not sure, your servicer can tell you in one call, and it is worth doing before you plan anything.

Does an appraisal pay for itself?

Appraisal fees vary by market and property type, and some servicers charge a processing fee on top. Rather than quote a number that may not apply to your home, ask your servicer what the total cost would be, then compare it with what you are paying now.

An example: if your PMI is $180 a month and the appraisal plus processing comes to $600, you break even in a little over three months and keep the difference for the rest of the loan. If your PMI is $60 a month on a small balance, the math is much less compelling, and waiting for the automatic 78 percent date may be the better call. A mortgage calculator helps here, but the real comparison is your actual premium against your actual quoted cost.

How to request PMI cancellation

Find your PMI disclosure form from closing. It shows the date your balance is scheduled to reach 80 percent.
Call your servicer and ask for the current cancellation process and any forms they require.
Put the request in writing, even if they take it by phone.
Confirm whether they will use the original value or require a current appraisal.
Clear any junior liens first. A HELOC or second mortgage will block cancellation.
Keep records of the request date and follow up in writing if you do not get a response.

If you are turned down, ask for the specific reason in writing. A denial based on a claimed decline in value should come with the valuation the servicer relied on.

When refinancing makes more sense

For FHA borrowers, refinancing is usually the only way off annual MIP before the loan is paid down. A conventional refinance can work if the home has appreciated enough to bring the new loan to 80 percent of the current value or less. That removes the FHA premium, but it adds closing costs and replaces your current rate with today’s rate.

Run the comparison honestly. Compare the new principal and interest payment plus closing costs against your current payment including MIP, and look at how many months it takes to recover the cost. Also weigh what you give up. FHA loans are assumable by a qualified buyer, and FHA streamline options are useful if rates move against you later. A conventional loan trades those features for the ability to drop mortgage insurance.

Current rates matter to that decision, so check today’s mortgage rates in Boca Raton before you assume a refinance is worth it. No one can promise that a refinance will save you money. The break-even math either works for your situation or it does not.

What can still get in the way

Late payments, even one 30 day late in the past year, can postpone cancellation.
A second mortgage or HELOC generally has to be paid off or subordinated before PMI comes off.
Lenders can apply their own requirements on top of investor guidelines, and portfolio lenders are not bound by Fannie or Freddie rules.
Condominium and multi-unit properties can face additional valuation review.
Appraisal values are opinions. If the first one comes in low, a second look is possible but not guaranteed.

Frequently asked questions

Can I remove PMI without an appraisal?

Sometimes. If your balance has already reached the 78 percent automatic termination point, the servicer uses the original value and the amortization schedule, so no appraisal is needed. If you are asking early at 80 percent, or asking based on current value, expect the servicer to require evidence of value.

Does FHA MIP fall off at 78 percent like PMI?

No. FHA annual MIP does not terminate based on the loan to value ratio reaching 78 percent. It ends after 11 years if you put 10 percent or more down, and otherwise generally lasts the full term unless you refinance.

I put 10 percent down on an FHA loan. When does the premium stop?

After 11 years, automatically. The 11 year period runs from the date the loan was insured, not from the date you reach any particular balance.

Does a cash-out refinance reset my PMI clock?

It can. A refinance creates a new loan with a new original value, generally the appraised value at the time of the refinance, and a new amortization schedule. That can help or hurt depending on the new loan to value ratio.

Can I just stop paying PMI?

No. Mortgage insurance is part of your loan terms until it is cancelled or terminated under the applicable rules. Skipping it creates a delinquent payment and can lead to collection activity.

Where to start

Pull your Closing Disclosure, find the cancellation date on your PMI disclosure, and make one call to your servicer. That gives you the real numbers to work with. If you are weighing a refinance to drop FHA mortgage insurance, a broker can compare conventional options side by side with your current loan.

You can review conventional loan options, compare FHA loan details, or start a pre-approval with MJS Financial. If you would rather run the payment math first, the mortgage calculator is a good place to begin.

This article is general information, not a commitment to lend or a guarantee of any outcome. Mortgage insurance rules depend on your loan program, your servicer, and your loan documents. Confirm the specifics of your loan before acting.