Own

Mortgage insurance, and how to stop paying it

On a conventional loan you may request cancellation at 80% of original value^†, and the lender must terminate automatically at 78% of original value^†. On an FHA loan the rules are entirely different, and for many borrowers the insurance never comes off at all without refinancing. Knowing which loan you have is the whole question.

One you have to ask for. The other happens on its own, later.

PMI and MIP are not the same thing

People use "PMI" for both, and lenders rarely correct them. Private mortgage insurance sits on conventional loans and cancels on loan-to-value. FHA mortgage insurance premium sits on FHA loans and does not — it runs on a fixed schedule regardless of how much equity you have. Almost every piece of bad advice in this area comes from applying one set of rules to the other.

Conventional loans: the two thresholds

Threshold	What happens	Who acts
80% of original value^†	You may request cancellation in writing	You — nothing happens automatically
78% of original value^†	The lender must terminate it	The servicer, provided you are current

Both are measured against the original value, not today’s. That matters in a market that has moved — and it is the reason people who believe they have plenty of equity are still paying. Reaching the threshold faster than the schedule requires paying down principal, which is a real option and one people forget is available.

Request in writing. Nothing happens at 80% unless you ask, and a servicer has no obligation to remind you.
Be current, and have been. A recent late payment can defer cancellation.
Expect a valuation requirement. The servicer may require evidence the property has not declined, and that is usually at your cost.
Improvements can count. Where you have substantially improved the property, a current appraisal may reach the threshold sooner than the amortisation schedule does.

FHA loans: a different regime entirely

FHA mortgage insurance cannot be cancelled early by paying the balance down^†. Paying the balance down faster does not trigger removal. For loans taken from June 2013, the annual premium runs for 11 years, and only if the original deposit was at least 10%^† — and with a smaller deposit than that, it runs for the life of the loan.

Which means refinancing is the exit

For an FHA borrower with a small original deposit, the only route out of mortgage insurance is refinancing into a conventional loan once there is enough equity. That is a real decision with real costs — closing costs, a new rate, and a fresh clock — and it should be modelled rather than assumed to be worthwhile.

The Florida arithmetic that changes the decision

Refinancing to shed mortgage insurance is usually presented as a straight comparison of the premium against the closing costs. In Florida there are two additional variables, and both cut against refinancing casually.

Doc stamps and intangible tax are charged on the new loan. Both are calculated on the loan amount, so a refinance incurs them again — a cost that does not exist in most states.
Your escrow is dominated by insurance and tax, not the premium. If the payment feels high, establish which line is actually causing it before assuming mortgage insurance is the problem. Frequently it is the homeowners premium.
Homestead and the assessment cap are unaffected either way. Refinancing does not disturb your exemption or the 3% or CPI, whichever is lower^† cap — a common and unnecessary worry.

What to do, in order

Establish which insurance you have. Conventional PMI or FHA MIP. Your closing documents and your servicer will both tell you, and the answer determines everything else.
If conventional, work out where you are against the original value, not the current one.
Write to the servicer at 80% rather than waiting for 78%. The difference is real money over the intervening months.
If FHA with under 10% down, model the refinance properly, including Florida doc stamps and intangible tax on the new loan.
Check what is actually driving your escrow first. A wind mitigation inspection may reduce your payment more than removing the premium would.

Choosing a lenderWhy the escrow estimate matters more than the rate.Closing costsDoc stamps and intangible tax, which a refinance repeats.Wind mitigationOften a bigger lever on the monthly payment than the premium is.

Close-up of hands holding a home insurance document indoors, showing personal details section.Photograph: Mikhail Nilov / Pexels

Common questions

When can I remove PMI in Florida?

On a conventional loan you may request cancellation at 80% of the original value, and the lender must terminate automatically at 78%, provided you are current. Both are measured against the original value, not today’s.

Does PMI come off automatically?

Only at 78%. At 80% you must request it in writing — nothing happens on its own, and a servicer has no obligation to remind you.

Can I remove FHA mortgage insurance?

Not by paying the balance down. For loans from June 2013 the annual premium runs 11 years if the original deposit was at least 10%, and for the life of the loan if it was less. Refinancing into a conventional loan is the only exit.

Is PMI based on my current home value?

The automatic thresholds are based on the original value. A current appraisal can help where you have substantially improved the property, but rising market value alone does not trigger cancellation under the automatic rules.

Should I refinance to get rid of mortgage insurance in Florida?

Model it carefully. Florida charges documentary stamp tax and intangible tax on the new loan, so a refinance incurs both again — and your escrow may be dominated by homeowners insurance rather than the premium you are trying to remove.

Conventional PMI cancellation is governed by the federal Homeowners Protection Act; FHA mortgage insurance follows separate HUD rules that depend on your case number date and original deposit. Confirm which applies to your loan with your servicer.