PMI isn't forever. The length of time that you'll pay PMI depends on a few things, including the size of your down payment, the amount of your mortgage, and the value of your home.
The more significant your down payment, the lower your mortgage balance, and the faster you will build equity in the house, the sooner you will be able to cancel PMI.
span data-preserver-spaces='true'>You can terminate PMI by refinancing your current mortgage into a new one that doesn't require it. When refinancing, you must apply for a new mortgage and go through the loan process as you did when you bought the house - except refinancing is much easier.
You can avoid paying PMI if your new loan is 80% or less than the home's current value - if the loan-to-value is 80% or less.
The law provides two ways to remove PMI from your home loan:
Request PMI cancellation. Once you've built equity of 20% in your home, you can ask the lender to cancel your PMI and remove it from your monthly payments. Submit a written request. Your lender will review it and determine whether you are eligible.
Automatic PMI termination. Suppose you're current on your mortgage payments. In that case, PMI will automatically terminate on the date when your principal balance reaches 78% of the original value of your home.