If you bought your home in Chesterfield, Henrico, or The Fan with less than 20% down, there’s a good chance you’re paying private mortgage insurance (PMI) or an FHA mortgage insurance premium (MIP) every single month — and it’s quietly adding hundreds of dollars to your payment that most homeowners barely notice on their statement.
The good news: mortgage insurance is not permanent for most homeowners. Knowing exactly when and how to remove it can save you real money, often $150 to $300 or more per month depending on your loan balance and insurance rate. That’s $1,800 to $3,600 back in your pocket every year.
This guide walks you through every step: from understanding what you’re actually paying, to requesting cancellation directly from your servicer, to refinancing your way out entirely. I’ll show you a worked dollar example using a realistic Chesterfield home price so the math is clear and concrete. Whether your home has appreciated since you bought it, you’ve been steadily paying down principal, or you’re considering a refinance to a conventional loan, there’s a path forward for you.
And if you want to explore your options without any impact to your credit score, Richmond Mortgages offers a no hard inquiry mortgage pre-approval through our NoTouch Credit process, so you can get real numbers before committing to anything. No surprises, no credit ding, just clarity.
Let’s get into it.
By Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205
Step 1: Identify Exactly What Type of Mortgage Insurance You’re Paying
Before you can eliminate mortgage insurance, you need to know exactly what you have. This sounds obvious, but it’s the step most homeowners skip — and it’s the one that determines everything else. The rules for removing PMI on a conventional loan and MIP on an FHA loan are completely different, and confusing the two can send you down the wrong path entirely.
Conventional PMI: Private mortgage insurance on a conventional loan is governed by the Homeowners Protection Act (HPA) of 1998. Under this law, you have the legal right to request cancellation once your loan balance reaches 80% of the original purchase price. Your servicer is required to cancel it automatically when your balance drops to 78% of the original value, even if you don’t ask. This is the most borrower-friendly setup.
FHA MIP: FHA mortgage insurance premium operates under entirely different rules. For FHA loans with case numbers assigned on or after June 3, 2013, where the original loan-to-value ratio was greater than 90%, MIP is required for the life of the loan. Read that again: the life of the loan. There is no cancellation request you can send. There is no magic balance you reach where it disappears. The only exit is to refinance into a conventional loan. This is a critical distinction that many Chesterfield and Henrico FHA borrowers don’t realize until years into their mortgage.
USDA Loans: USDA loans carry an annual guarantee fee that functions similarly to mortgage insurance. The removal rules differ from both PMI and MIP, so if you have a USDA loan, confirm the specifics with your servicer directly. You can also review our USDA loan guide for Richmond, VA to understand how these programs work in this market.
To find your current mortgage insurance payment, look at your monthly mortgage statement. It will typically appear as a separate line item labeled “PMI,” “MIP,” or “mortgage insurance.” You can also pull your original Loan Estimate or Closing Disclosure from when you closed — both documents show the MI premium clearly.
The most direct approach: call your servicer and ask specifically, “What type of mortgage insurance do I have, what is my current monthly premium, and what are the conditions for removal?” Ask them to confirm this in writing or via a follow-up email. Having it documented matters if there’s ever a dispute later.
Success indicator: You know your loan type (conventional, FHA, or USDA), your exact monthly MI premium, and which set of removal rules applies to your situation. With that information in hand, move to Step 2.
Step 2: Calculate Your Current LTV — The 80% Threshold That Changes Everything
Loan-to-Value ratio, or LTV, is the number that drives nearly every mortgage insurance decision. It’s simple math: divide your current loan balance by your home’s current value, and multiply by 100. If that number is at or below 80%, you’re at the threshold where PMI cancellation becomes possible on a conventional loan.
There are two ways to reach 80% LTV. First, you pay down principal over time through your regular monthly payments. Second, your home appreciates in value, which increases the denominator in the equation and lowers your LTV even if your balance hasn’t moved much. In a market like Chesterfield and Henrico, where home values have risen meaningfully over the past several years, appreciation is often the faster path.
Worked Dollar Example — Chesterfield:
Let’s say you purchased a home in Chesterfield for $380,000 with 5% down ($19,000). Your original loan balance was $361,000. To reach 80% LTV based on the original purchase price, your balance needs to fall to $304,000 (80% of $380,000). On a 30-year loan at a rate in the mid-6% range, reaching that balance through principal paydown alone takes many years of payments.
Now consider what happens if your home has appreciated. If that same Chesterfield home is now worth $430,000, the math changes immediately. At a $430,000 value, 80% LTV equals $344,000. If your current loan balance is around $344,000 or below, you may already qualify to request PMI cancellation today — not years from now.
According to Virginia REALTORS market research, Chesterfield County has seen consistent median home price appreciation in recent years. Homeowners who purchased even two to three years ago may be closer to the 80% LTV threshold than they realize.
Automatic vs. Requested Cancellation: Under the HPA, your servicer must automatically cancel PMI when your balance reaches 78% LTV based on the original purchase price and original amortization schedule — no action required from you. But you can request cancellation proactively at 80% LTV, which means you stop paying sooner. Do not wait for automatic cancellation if you’re already at or near 80%.
To get your current loan balance, log into your servicer’s online portal or call them directly. For a current home value estimate, check Zillow’s Richmond market data, request a broker price opinion, or ask a local real estate agent for a comparative market analysis. These estimates aren’t appraisals, but they give you a working number to determine whether it’s worth pursuing formal cancellation. Understanding current Richmond VA mortgage rates alongside your LTV position will also help you decide whether a refinance makes sense at the same time.
Success indicator: You have your current loan balance from your servicer and a reasonable current value estimate for your home. You’ve done the LTV math and know whether you’re at, near, or still working toward 80%.
Step 3: Request PMI Cancellation Directly From Your Servicer
This step is for conventional loan borrowers only. If you have an FHA loan, skip ahead to Step 4 — the process is fundamentally different for you.
If you’ve confirmed you’re at or below 80% LTV on a conventional loan, you have a legal right under the Homeowners Protection Act, as explained by the CFPB, to submit a written request to cancel your PMI. Your servicer is required to respond within 30 days.
What your servicer will require:
1. A written cancellation request — most servicers have a form, but a clear written letter also works.
2. Proof that your loan is current. Specifically, no 30-day late payments in the past 12 months and no 60-day late payments in the past 24 months. If you’ve had any late payments in this window, you may need to wait until the lookback period clears.
3. Evidence of home value if you’re using appreciation rather than the original purchase price. This is where it gets more involved.
Using Appreciated Value: If your home’s current market value is what pushes you to 80% LTV (rather than principal paydown alone), your servicer will typically require a formal appraisal or a broker price opinion ordered through their process. You generally pay for this appraisal out of pocket. In the Richmond metro area, appraisal costs for a single-family home typically run in the $400 to $600 range. That’s a one-time cost worth paying if it eliminates $150 to $200 or more per month in PMI.
Important: the servicer controls which appraisal vendor is used when appreciated value is involved. You cannot simply hand them an appraisal you ordered independently. Ask your servicer upfront what their process is for value-based cancellation requests.
Paper trail matters: Send your cancellation request via certified mail and keep a copy. If there’s ever a dispute about the timeline or the servicer’s response, having a documented paper trail protects you. The HPA gives you clear rights here — use them.
If you’re unsure whether your equity position is strong enough to qualify, a soft pull mortgage prequalification from Richmond Mortgages can assess your full picture — current LTV, credit profile, and whether a cancellation request or a refinance makes more sense — without any impact to your credit score.
Success indicator: You receive written confirmation from your servicer that PMI has been removed, along with your updated monthly payment amount reflecting the cancellation. Keep this confirmation on file.
Step 4: If You Have an FHA Loan — Your Path Out Is a Refinance
Here’s the reality that many FHA borrowers in Henrico and Chesterfield don’t hear clearly enough: for most FHA loans originated after June 3, 2013, with an original LTV above 90%, mortgage insurance is permanent. There is no cancellation request. There is no balance threshold you hit. Per HUD guidelines, MIP stays for the life of the loan unless you refinance out of it entirely.
The path forward is a refinance into a conventional loan. Here’s what that requires and what the math looks like.
The Equity Requirement: To refinance into a conventional loan with no PMI at all, you need at least 20% equity in the new appraised value. If you have between 10% and 19% equity, you can still refinance to conventional and pay conventional PMI — but conventional PMI rates are typically lower than FHA MIP, and conventional PMI can eventually be removed. That’s still a meaningful improvement over permanent FHA MIP.
The Math on FHA MIP vs. Conventional PMI:
For most current 30-year FHA loans, the annual MIP rate is 0.55% of the loan balance, per HUD’s published MIP schedule. On a $300,000 loan balance, that’s $1,650 per year, or $137.50 per month — every month, for the life of the loan.
Conventional PMI for a borrower with solid credit at 85% to 90% LTV is often meaningfully lower than that. And once you reach 80% LTV on the conventional loan, you can request cancellation. The FHA MIP never goes away on its own; conventional PMI does. Our detailed guide on how to refinance your mortgage in Richmond, VA walks through the full process step by step if you’re ready to model this move.
Henrico Appreciation Context: Henrico homeowners who purchased two to four years ago have seen real appreciation in their home values. Many are now in a position where a refinance into a conventional loan would eliminate MIP entirely — not just reduce it. If your home has appreciated enough to put you at or above 20% equity on a new appraisal, you could refinance to a conventional loan with no MI at all and potentially a competitive rate depending on current market conditions.
Before ordering an appraisal or paying any fees, start with a no credit hit mortgage application at RichmondMortgages.com to model whether a refinance pencils out for your specific situation.
The Break-Even Calculation: Divide your estimated closing costs by your projected monthly savings after the refinance. If closing costs are $6,000 and you save $200 per month, your break-even is 30 months. If you plan to stay in the home longer than that, the refinance makes financial sense.
Success indicator: You’ve run the break-even math on a refinance and know whether eliminating FHA MIP through a conventional refinance is the right move for your timeline and equity position.
Step 5: Compare Your Refinance Options Across Multiple Lenders
Once you’ve decided a refinance is the right path, the next step is making sure you’re not leaving money on the table by going to just one source. This is where working with an independent mortgage broker creates a real, measurable advantage.
Richmond Mortgages shops hundreds of lenders simultaneously through our broker platform. That means we’re comparing rates, fees, and loan structures across a wide range of wholesale lenders in a single pull — rather than you spending weeks getting quotes one at a time from individual banks or retail lenders. Understanding how to compare multiple mortgage lenders at once without hurting your credit is a key part of getting the best outcome on a refinance.
The 2026 Conforming Loan Limit: For Henrico and Chesterfield, the 2026 conforming loan limit is $806,500, per FHFA guidelines. Conventional refinances at or below this limit are eligible for standard PMI removal rules and the full range of conventional loan programs.
Richmond Mortgages vs. CapCenter — What the Difference Actually Means:
CapCenter markets a model built around their own product set and closing cost structure. As an independent broker, Richmond Mortgages operates differently in ways that directly affect your MI elimination options.
Product Access: Richmond Mortgages accesses hundreds of wholesale lenders. CapCenter offers products through their own platform. If your situation requires Non-QM, DSCR, or Bank Statement loan products, CapCenter does not publicly offer these programs. Richmond Mortgages does.
Credit Flexibility: Richmond Mortgages can access VA loan programs down to 500 FICO. CapCenter does not advertise this level of credit flexibility.
MI Elimination Strategy: Because Richmond Mortgages can shop across lenders, we can find the loan structure that eliminates MI at the lowest total cost — whether that’s a conventional refinance, a piggyback structure, or a rate-and-term refinance that crosses the 20% equity threshold.
| Feature | Richmond Mortgages | CapCenter |
|---|---|---|
| Lender Access | Hundreds of wholesale lenders | Own product set |
| Non-QM / DSCR / Bank Statement | Yes | Not publicly offered |
| VA Loans to 500 FICO | Yes | Not advertised |
| MI Elimination Options | Multiple strategies | Limited to own programs |
| No-Touch Credit Review | Yes (NoTouch Credit) | Not offered |
Cash-Out Consideration: If you have significant equity, a cash-out refinance up to 90% LTV may allow you to consolidate higher-interest debt while restructuring your loan. Depending on your equity position, this can be structured to eliminate MI in the process. Ask about this option specifically when you speak with us.
Success indicator: You have loan scenarios from multiple lenders showing your projected new rate, new monthly payment, whether MI is eliminated, and the break-even timeline on closing costs.
Step 6: Consider a Piggyback HELOC to Cross the 20% Threshold Without Refinancing
Here’s a strategy that many homeowners overlook: if you have a first mortgage with a rate you want to keep, but you’re sitting at 85% to 90% LTV and paying PMI, you may be able to use a second mortgage or HELOC to push your first mortgage LTV to 80% without touching your original loan at all.
This is called a piggyback structure. You borrow enough through a HELOC or home equity loan to pay down your first mortgage balance to 80% LTV. Once that threshold is crossed, you submit a PMI cancellation request to your first mortgage servicer. You’re now paying the first mortgage (no PMI) plus a second mortgage payment — but the combined total may be lower than what you were paying with PMI included. Our guide on Richmond VA cash-out HELOC options covers how to access your equity without resetting your existing mortgage rate.
When This Makes Sense: Your first mortgage has a rate significantly below current market rates and you don’t want to refinance it away. You’re close to 80% LTV but not quite there. You have enough equity to support a second lien.
Bank Statement HELOC for Self-Employed Borrowers: Richmond Mortgages offers a Bank Statement HELOC, which is particularly useful for self-employed homeowners in Church Hill or The Fan District who don’t show traditional W-2 income. If your tax returns understate your actual cash flow, a self-employed mortgage in Richmond or a bank statement product may be the only path to accessing your home equity.
The Trade-Off: The second mortgage carries its own interest rate and monthly payment. Run the math carefully. Add the first mortgage payment (without PMI) plus the HELOC payment and compare it to your current all-in payment with PMI. The piggyback only makes sense if the combined payment is lower — or if the rate environment makes a full refinance unattractive.
Important Pitfall: Not all first mortgage servicers allow subordinate financing without consent. Before proceeding, confirm with your first mortgage servicer that they will permit a second lien on the property.
Success indicator: You’ve compared the all-in monthly cost of a piggyback structure against a full refinance and chosen the path that delivers the greater monthly savings at an acceptable break-even timeline.
Putting It All Together — Your MI Elimination Checklist
Mortgage insurance is not a permanent fixture in your monthly payment. It’s a cost that can be engineered out with the right strategy and the right timing. Here’s your quick-reference checklist to keep the process organized:
1. Identify your loan type and MI type. Conventional PMI or FHA MIP? The removal rules are entirely different.
2. Calculate your current LTV. Current loan balance divided by current home value. Are you at or below 80%?
3. If conventional at 80% LTV: Submit a written PMI cancellation request to your servicer. Send it certified mail. Follow up if you don’t hear back within 30 days.
4. If FHA: Model a refinance into a conventional loan. Run the break-even math. If you have 20% equity or more, you may be able to eliminate MIP entirely in one move.
5. Compare a full refinance vs. a piggyback HELOC. Both can eliminate MI — the right choice depends on your current rate, equity position, and monthly payment math.
6. Get a no-touch soft pull review from Richmond Mortgages before committing to anything. Our NoTouch Credit process uses a Vantage Score 4.0 soft pull — no hard inquiry, no credit impact, real numbers.
Ready to find out exactly what eliminating your mortgage insurance would save you each month? Get your personalized rate comparison today — no credit impact, no obligation, just a clear picture of your options from a broker who knows Chesterfield, Henrico, and the Richmond market.
Call Duane Buziak directly at 804-212-8663 or start online at RichmondMortgages.com. We’re available 24/7 and offer some of the fastest close timelines in the Richmond market.
Frequently Asked Questions
How do I know if I’m paying PMI or FHA mortgage insurance? Check your monthly mortgage statement for a line item labeled “PMI,” “MIP,” or “mortgage insurance.” You can also review your original Closing Disclosure, which identifies the loan type and MI premium. If you’re unsure, call your servicer and ask directly.
At what LTV can I request PMI removal on a conventional loan? You can submit a written cancellation request when your loan balance reaches 80% of the original appraised value or purchase price. Your servicer is required to cancel PMI automatically at 78% LTV, but requesting at 80% gets you there faster.
Can I remove FHA mortgage insurance without refinancing? For most FHA loans originated after June 3, 2013, with an original LTV above 90%, no — MIP cannot be removed without refinancing into a conventional loan. This is a permanent feature of these loans per HUD guidelines.
How long does it take a servicer to cancel PMI after I request it? Under the Homeowners Protection Act, your servicer must respond to a written PMI cancellation request within 30 days. If your loan is current and you meet the equity requirements, cancellation should follow promptly after their review.
Does my home need a new appraisal to cancel PMI? If you’re relying on the original purchase price to establish 80% LTV through principal paydown alone, an appraisal may not be required. If you’re using appreciated value, your servicer will typically require a formal appraisal or BPO ordered through their process, at your expense.
What credit score do I need to refinance out of FHA MIP? Conventional loans are generally accessible at 620 FICO and above for standard programs, though rates improve significantly at 740 and above. Richmond Mortgages can access programs across a wide credit range — including VA loans down to 500 FICO for eligible veterans. A mortgage pre-approval without hard pull through our NoTouch Credit process will show you exactly where you stand.
Can I use a HELOC to eliminate mortgage insurance? Yes, through a piggyback structure. If you use a HELOC to pay your first mortgage balance down to 80% LTV, you can then request PMI cancellation from your first mortgage servicer. Richmond Mortgages offers a Bank Statement HELOC for self-employed borrowers who don’t qualify through traditional income documentation.
How much can I save per month by eliminating mortgage insurance in Chesterfield or Henrico? Savings vary by loan balance and MI rate. On a $300,000 loan balance with FHA MIP at 0.55% annually, that’s approximately $137.50 per month in mortgage insurance alone. On a conventional loan with PMI, savings in the $100 to $250 per month range are common depending on the original LTV and credit profile. Run the exact numbers with a broker before making any decisions.
Legal Disclaimer: This content is for informational purposes only and does not constitute a commitment to lend. Rates, programs, and terms are subject to change without notice and are subject to borrower qualification. Not all applicants will qualify. Consult a licensed mortgage professional for guidance specific to your financial situation. Duane Buziak, NMLS #1110647 | Coast2Coast Mortgage LLC NMLS #376205.
About the Author: Duane Buziak is a licensed mortgage broker with NMLS #1110647 at Coast2Coast Mortgage LLC (NMLS #376205), serving homeowners across Chesterfield, Henrico, The Fan, Church Hill, and Midlothian. Named Best Mortgage Broker in Virginia 2025 and recognized on the Scotsman Guide Top Originators list, Duane specializes in helping Richmond-area homeowners find the most cost-effective mortgage solutions — including eliminating mortgage insurance through the right strategy for their specific situation. Reach Duane directly at 804-212-8663 or at RichmondMortgages.com.