How do I remove PMI from my mortgage in Wisconsin?

Rob Miller, Branch Manager at MadCity Home Loans, walks Wisconsin homeowners through the exact steps to eliminate their monthly PMI payment.

How do I remove PMI from my mortgage in Wisconsin?

Private Mortgage Insurance (PMI) was added to your loan because you put less than 20% down on a conventional mortgage. The good news: it doesn't last forever, and there are ways to get rid of it faster than you might think.

Method 1: Automatic Cancellation (Federal Law — Homeowners Protection Act)

By law, PMI must be automatically cancelled when your loan balance reaches 78% of the original purchase price — based on your original amortization schedule. You don't have to do anything; the lender is required to cancel it.

Method 2: Request Cancellation at 80% LTV

You don't have to wait until 78%. Once your loan balance drops to 80% of the original purchase price, you can formally request cancellation. You typically need:

• A good payment history (no 30-day lates in the past 12 months)
• Written request to your loan servicer
• Sometimes a new appraisal (check with your servicer)

Method 3: New Appraisal Based on Current Value

If your home has appreciated significantly, you may have reached 20% equity sooner than the amortization schedule shows. Some lenders will order a new appraisal and cancel PMI based on the current market value, not the original purchase price. This is lender-dependent and usually requires 2+ years of ownership.

Method 4: Refinance

If you have 20%+ equity based on current value, refinancing into a new conventional loan eliminates PMI entirely. If current rates are favorable, this can be a double win — lower rate and no PMI.

Note: FHA MIP works differently and generally cannot be cancelled without refinancing into a conventional loan. If you're on an FHA loan with growing equity, call us — a conventional refi may save you $200+/month.

---

Related Guide: Learn the full breakdown of PMI and how to avoid it in our PMI Guide.