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Should I refinance just to get rid of mortgage insurance?

Compare the entire new loan with keeping the current mortgage, including any available insurance cancellation path. Removing one monthly charge can still leave you with a higher rate, larger balance or longer repayment period. Use actual costs and a shared comparison horizon before deciding that the refinance improves your plan.

By Eric Hamilton · Published September 17, 2026

Check cancellation first

Ask the current servicer whether the existing insurance can end without refinancing and what conditions apply. The answer depends on the loan type and relevant rules. Do not pay refinance costs before understanding that option.

Use the full payment

Compare principal and interest, mortgage insurance and consistent property costs. A smaller insurance line alone is not a complete monthly comparison.

Count the new costs

Include fees paid in cash or added to the balance. Ask what you will owe after the same number of years under each plan. A longer term can reduce the payment while extending debt.

Consider the time you will keep it

A planned move or early payoff can make upfront costs harder to recover. Test a shorter timeline as well as your expected one. No simple percentage rule fits every loan.

Sources and scope

General U.S. education. Program, investor, company, servicer and state requirements vary. Agency references describe their own scope, not universal eligibility. Illustrations are hypothetical, not quotes or approvals.

  1. CFPB: Requesting PMI cancellation Accessed September 17, 2026
  2. CFPB: Choosing a loan offer Accessed September 17, 2026

Approved for publication by Eric Hamilton on September 17, 2026.

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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Your next questions

Homeowners insurance or mortgage insurance: which am I paying?

Homeowners insurance covers specified property risks under a policy. Mortgage insurance generally protects the lender if a borrower does not repay the loan. They are different products, and you may pay both. Removing mortgage insurance does not remove the need for required property coverage.

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Can I change homeowners insurance when my mortgage has escrow?

You can explore other policies, but coordinate any change with your insurance professional and mortgage servicer. Compare coverage as well as price, keep required coverage in place and confirm who pays each premium. A policy change can affect the escrow account and the next payment calculation.

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How to Remove PMI From Your Mortgage

For many conventional mortgages covered by federal PMI rules, you can request cancellation when the balance reaches 80 percent of the home’s original value, subject to conditions. Automatic termination follows a different rule. Ask your servicer which rules apply to your loan before relying on an online value estimate or making a large principal payment.

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Is mortgage protection insurance the same as PMI?

No. PMI generally protects the lender against certain losses if a borrower defaults. Products marketed as mortgage protection may involve life, disability or other coverage with different terms. Review who is insured, who receives benefits and what triggers payment. Do not assume an unsolicited insurance offer is required by your lender.

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