Updated almost 7 years ago on . Most recent reply
Ultimate Chart on When You Can Drop PMI
When you can drop PMI is governed by the Homeowner's Protection Act of 1998, which sets minimum requirements. Lenders in theory can be more generous than this; in practice they keep the insurance policy in effect for the maximum duration allowed by law (hence the necessity of that law to begin with). Note that FHA and USDA loans have mortgage insurance, but do not have private mortgage insurance, so this isn't applicable to them.
It's actually pretty complicated; sufficiently so that I try my best to answer "when can I drop my PMI?" with "once you have the equity and other requirements are met" without further details. The reality is that as a LO it's not really my department, and when you go to drop PMI typically your LO has been out of the picture for several years.
But, if you want the nitty gritty on just how much equity, and what the other requirements are, here you are.