PMI Customer Care: How to Resolve Private Mortgage Insurance Questions and Remove It Efficiently

Private Mortgage Insurance (PMI) protects lenders when a borrower makes a down payment under 20% on a conventional loan. From the homeowner’s perspective, the most common customer care needs are understanding monthly PMI charges, fixing escrow or billing errors, and getting PMI removed as soon as legally possible. The key is knowing who to contact (usually your servicer, not the insurer), what your rights are under the Homeowners Protection Act of 1998 (HPA), and what documentation accelerates a cancellation request.

Unlike hazard insurance, PMI is administered through your mortgage servicer—the company that collects your payment. Even if your loan was originated by Lender A and later sold to Servicer B, cancellation and refunds are handled by Servicer B. Insurers such as MGIC, Radian, Essent, Enact, or National MI rarely interact directly with borrowers. This guide explains the practical steps, timelines, costs, and escalation paths to resolve PMI issues quickly and lawfully.

Who to Contact and What to Expect from Customer Care

Your mortgage servicer’s customer care team is the primary point of contact for PMI questions. You’ll find their phone number on your monthly mortgage statement and in your online account portal. When you call, have your loan number, property address, and current contact information ready. Ask specifically for “PMI cancellation guidelines” for your loan type and investor (for example, Fannie Mae or Freddie Mac) because investor overlays can affect appraisal requirements and payment history standards.

Most servicers handle PMI through standardized workflows: an eligibility review, a property value check (often a full appraisal), and a payment history assessment. Expect to confirm occupancy (PMI rules differ for investment properties) and to be quoted fees for any valuation work. A thorough call should end with a written summary via secure message or email outlining next steps, required documents, fees, and the expected timeline.

Your Rights Under the Homeowners Protection Act (1998)

The HPA established clear milestones for PMI termination on most conventional loans originated on or after July 29, 1999. There are three primary mechanisms: borrower-requested cancellation at 80% loan-to-value (LTV), automatic termination at 78% LTV, and final termination at the midpoint of the amortization schedule. These are calculated against the “original value” (generally the lesser of purchase price or appraised value at origination), unless your servicer/investor allows a new appraisal for “current value” consideration.

In addition, the HPA requires servicers to return any unearned PMI premiums after cancellation or termination, typically within a short statutory window. Servicers must also provide initial and annual disclosures explaining PMI and your cancellation rights. Note: HPA rules do not apply to FHA, USDA, or VA loans; those programs have separate mortgage insurance policies and timelines.

Borrower-Requested Cancellation at 80% LTV

You can request PMI cancellation when your principal balance reaches 80% LTV of the original value based on the amortization schedule, or sooner if you’ve made extra principal payments or documented an increase in current value via a new appraisal. Servicers commonly require a “good payment history” (for example, no 60-day late in the past 24 months and no 30-day late in the past 12 months), the loan to be current, and the property to be owner-occupied with no subordinate liens.

If using current value, expect to pay for a valuation. A full interior appraisal is often required; desktop or drive-by products may be allowed for low-risk profiles at the servicer’s discretion. Typical appraisal fees range from $400 to $700 depending on market and property complexity. If you’ve significantly improved the home (e.g., a $25,000 kitchen remodel in 2023), keep receipts and permits—those documents can help justify a higher current value.

Automatic and Final Termination: 78% LTV and Midpoint

Servicers must automatically terminate PMI at 78% LTV of the original value based on scheduled amortization, assuming you are current. This is not dependent on a new valuation—you do not have to request it. If you’ve prepaid principal ahead of schedule, HPA automatic termination still occurs at 78% of the original amortization, but you can request earlier cancellation at 80% if you meet the other conditions.

If PMI has not already ended due to the above triggers, it must terminate at the midpoint of the amortization period (for example, month 180 on a 360-month loan) provided you are current. After termination, servicers must apply any unearned premium credits to your escrow or refund them, per their normal process.

Costs, Timelines, and a Quick Example

From request to decision, PMI cancellation reviews typically take 30 to 45 days if an appraisal is required and all documents are submitted promptly. In addition to appraisal costs, some servicers charge a modest underwriting or processing fee (often $75 to $150). If your request is based on scheduled amortization at 80% with no revaluation, the process is often faster and less expensive.

Example: You purchased a home for $375,000 with 10% down in 2022. Your original loan amount was $337,500 and the original value was $375,000. The 80% LTV threshold is 0.80 × $375,000 = $300,000. Once your principal balance reaches $300,000, you can request cancellation (if you meet payment history and occupancy conditions). Automatic termination occurs at 78% LTV: 0.78 × $375,000 = $292,500, based on the scheduled amortization, regardless of prepayments.

Special Cases: LPMI, Single-Premium PMI, and Government Loans

Lender-Paid Mortgage Insurance (LPMI) is embedded in your interest rate rather than billed as a separate PMI line item. The HPA’s cancellation and automatic termination provisions generally do not apply to LPMI. To remove the ongoing cost component of LPMI, most borrowers refinance once they reach sufficient equity.

Single-premium PMI can be refundable or nonrefundable depending on your policy and investor. If refundable, any unearned portion is typically prorated and credited upon cancellation or refinancing, subject to terms. Government-backed loans follow different rules: FHA charges Mortgage Insurance Premium (MIP), which may be for 11 years or the life of the loan depending on case number date, term, and down payment; USDA has an annual fee for the life of the loan; VA does not have monthly MI but charges a funding fee. Contact your servicer for program-specific details and consider calling HUD’s FHA Resource Center at 1-800-225-5342 for FHA questions.

Documents That Speed Up PMI Customer Care

• Recent mortgage statement and full loan number; proof of current payment status.
• Original value evidence (closing disclosure or original appraisal) and current value evidence (full appraisal if requested).
• Occupancy documentation if requested (e.g., driver’s license address, homestead exemption record).
• Proof of home improvements: itemized invoices, permits, completion dates, and total spend by year.
• Homeowner’s insurance declarations page and confirmation of no subordinate liens.

Common Denial Reasons and How to Address Them

Denials typically cite insufficient equity (LTV still above 80%), property value concerns, payment history exceptions, or unverified occupancy. If the issue is value, ask whether a reconsideration of value is available and what additional comparables or documentation are acceptable. If the issue is payment history, request the exact dates and periods of delinquency and when you’ll be eligible to reapply after curing them.

If you receive a denial, request the decision in writing with a list of specific conditions to cure. Keep all correspondence in a single digital folder and set calendar reminders based on the servicer’s stated re-review timelines (often 6 months after a decline for value-based requests). If market values are rising, a fresh appraisal in 3 to 6 months may tip the decision in your favor.

Escalation and Regulatory Help

If customer care is unresponsive or you believe HPA rights have been misapplied, escalate within the servicer first—ask for the PMI or escrow supervisory team and then the compliance or executive resolution desk. Submit a written “qualified written request” or “notice of error” through the address listed on your statement, and keep return receipts.

For unresolved issues, you can file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint or by phone at 1-855-411-2372. State mortgage regulators can also assist; you can look up your servicer’s state licensing and regulator via nmlsconsumeraccess.org. Keep copies of all appraisals, statements, and denial letters; regulators often request them.

Pro Tips to Prevent PMI Headaches

Set up autopay to avoid inadvertent late payments that reset your “good payment history” clock. If you’re targeting early removal via current value, plan improvements that increase livable square footage or update kitchens and baths, document the spend by year, and time your appraisal after comparable sales close in your area.

Once your balance nears the 80% threshold, request your servicer’s written cancellation checklist in advance, confirm allowed valuation products and fees, and line up your appraiser quickly. After PMI ends, verify the change: your online account should show the PMI line item removed within the next billing cycle, and any escrow analysis should reflect lower monthly payments once unearned premiums are refunded.