A Checklist for Dropping PMI on a Georgia Conventional Loan

On Sept. 15, 2026, Federal Housing Finance Agency Director Bill Pulte directed Fannie Mae to change its Servicing Guide to match Freddie Mac's, so that servicers may contact borrowers who could qualify to cancel private mortgage insurance (PMI), HousingWire reported. Before you pay for an appraisal to remove PMI Georgia homeowners should run through the checklist below, because the rules for qualifying did not change. Only the rules about who can start the conversation did.

Until this directive, Fannie Mae's guide said plainly: "The servicer must not solicit a borrower for MI termination based on current value of the property" (Fannie Mae Servicing Guide B-8.1-04). Freddie Mac already let servicers identify loans that are close to or at a cancellation point and tell borrowers the next steps. National Mortgage News confirmed the order. Neither report gave a date when Fannie's updated guide takes effect, so check with your servicer before assuming it has started outreach.

Pulte's framing: "If your Home is worth more, or you have paid the loan down far enough, you should be able to drop EXTRA Mortgage Insurance." U.S. Mortgage Insurers, through Seth Appleton, said it supports aligning Fannie with Freddie on proactive outreach. Here is how to tell whether you are actually close.

Step 1: Can you remove PMI on your loan at all?

This checklist applies to conventional loans backed by Fannie Mae or Freddie Mac. Both companies offer online loan lookup tools where you can confirm whether either one owns your mortgage. Your monthly statement or closing documents will show whether the loan is conventional, FHA or VA.

If you have an FHA loan, this is not your route. FHA mortgage insurance premiums follow separate rules, and many Georgia first-time buyers who used FHA would need to refinance into a conventional loan to drop that premium. VA loans do not carry PMI.

Step 2: Find your original value and your current balance

Two numbers drive almost everything:

• Original value. Under the federal Homeowners Protection Act, this is the lower of the contract sales price or the appraised value when you bought (CFPB). If you paid $360,000 and the appraisal came in at $365,000, your original value is $360,000.

• Current principal balance. Use your most recent mortgage statement.

Divide the balance by the relevant value to get your loan-to-value ratio (LTV). That ratio is what servicers check.

Step 3: Choose your route

Fannie Mae's guide and the CFPB describe several paths. For a one-unit primary home or second home:

| Route | LTV needed | Other conditions | | --- | --- | --- | | Request, based on original value | 80% or less of original value | Good payment history; servicer confirms value has not fallen | | Request, based on current value (loan 2 to 5 years old) | 75% or less of current value | New valuation required | | Request, based on current value (loan more than 5 years old) | 80% or less of current value | New valuation required | | Substantial improvements | 80% or less | 2-year seasoning minimum can be waived if improvements raised the value | | Automatic termination | Balance scheduled to reach 78% of original value | Payments current; no request needed | | Midpoint termination | Any | Ends the month after the loan reaches the midpoint of its amortization schedule, if current |

Investment properties and 2-4 unit homes face a tighter standard under Fannie's guide: 70% LTV based on original value, or 70% of current value after more than 2 years of seasoning (B-8.1-04).

Step 4: Check your payment history

For removal by request, Fannie Mae requires that:

• The loan is current.

• No payment was 30 or more days late in the last 12 months.

• No payment was 60 or more days late in the last 24 months.

Late payments caused by servicer-provided forbearance, repayment plans or payment deferrals are not counted against you. A lender representative quoted by HousingWire said removal typically requires 24 months of on-time payments.

Step 5: Ask how the servicer will check the value

On the original-value route, Fannie has the servicer run an automated valuation through its servicing system to confirm your home is worth at least its original value. If that automated value shows a decline, you can order a broker price opinion (BPO) or an appraisal, or pay the balance down further.

On the current-value route, you will usually need a new valuation. The CFPB notes that servicers may require an appraisal and may make you pay for it. HousingWire's lender source put a typical appraisal at $500 to $700.

Before you order anything, ask your servicer in writing which valuation it accepts, who orders it and what it costs. An appraisal you order on your own may not be accepted.

Step 6: Is PMI removal realistic for recent Georgia buyers?

For many 2023 and 2024 buyers, not yet. The Georgia Association of REALTORS reported a statewide median sales price of $360,000 in both 2024 and 2025, a 0.0% change, with months of supply rising to 3.9 and days on market to 56, a market it described as "moving toward balance" (Georgia REALTORS). Flat prices mean buyers who put 3% to 5% down have gained little equity from appreciation.

Worked example (illustrative, our calculation)

Assume a Georgia home bought in mid-2024 for $360,000 with 5% down:

• Loan: $342,000, 30-year fixed, assumed 7.0% rate

• Principal and interest: about $2,275 a month

• Balance in September 2026 (about 27 months in): roughly $333,800

Current-value route: if the home appraised at $370,000 today, the LTV would be about 90%. Reaching 75% would take a value of about $445,000, or a balance near $277,500, which means roughly $56,000 of prepayment.

Improvements route: reaching 80% on the current balance would take a value of roughly $417,000.

Original-value route: the target balance is $288,000 (80% of $360,000). That requires about $46,000 of prepayment.

Automatic route: on the regular schedule, the balance first reaches $280,800 (78%) around month 141, roughly spring 2036.

For this borrower, a servicer letter is unlikely to lead to cancellation soon unless the home has risen well above the state trend or they can prepay a large sum.

Step 7: Do the math on prepaying

Freddie Mac estimates PMI at about $30 to $70 a month for every $100,000 borrowed (My Home by Freddie Mac). On the $342,000 loan above, that is about $103 to $239 a month, or roughly $1,230 to $2,870 a year. That is the payment drop if PMI is removed.

Compare that with the roughly $46,000 needed to reach 80% of original value. The PMI savings alone work out to about 2.7% to 6.2% a year on the money prepaid (our calculation), and only start once you cross the threshold. Prepaying can still make sense for some households, but it is usually a poor trade if it would drain your emergency fund or if you are carrying credit card or other debt at higher rates. Get your own PMI cost from your Closing Disclosure or statement rather than relying on the range.

What a servicer letter means, and what it does not

• It is an invitation to start the process, not an approval.

• It does not change the LTV, seasoning or payment-history rules.

• It may lead to a valuation you pay for. Ask about fees first.

• Send your cancellation request in writing and keep a copy.

If you get a letter or call that asks for money up front, verify it by calling the servicer at the number on your statement, not a number in the message.

Is refinancing ever the better route?

Sometimes. A refinance can make sense if your home's value has risen enough that a new loan would not need mortgage insurance, and for FHA borrowers it is often the only way to drop MIP. But a refinance carries its own closing costs, including Georgia attorney fees and title charges, and resets your loan term. Compare the total cost against the PMI you would save, and against simply waiting for the 78% date. There is no need to rush a decision because of this news.

Printable checklist

• Confirm Fannie Mae or Freddie Mac owns your conventional loan (not FHA or VA).

• Find your original value: the lower of your purchase price or purchase appraisal.

• Pull your current balance and calculate LTV against original and current value.

• Match yourself to a route: 80% original, 75% or 80% current, improvements, or automatic at 78%.

• Check payment history: current, nothing 30+ days late in 12 months, nothing 60+ days late in 24.

• Ask the servicer in writing which valuation it accepts and what it costs before ordering one.

• Compare PMI saved per year with any prepayment or appraisal cost before acting.

Related reading

• Buying a House Near Fort Benning: A Columbus Guide for Soldiers

• What the September Rate Jump Does to a Georgia Mortgage Payment

• How to Weigh a Builder Rate Buydown vs Price Reduction in Georgia

• Should Georgia First-Time Buyers Keep Waiting for Lower Rates?

• Which Georgia Dream Loan Fits Your Purchase?

• Every Lender Can Now Pull a VantageScore 4.0. FICO Still Rules Georgia Dream.

• More First-Time Buyers coverage

Sources

• HousingWire: FHFA moves to align GSEs on PMI cancellation outreach

• National Mortgage News: Fannie servicers can contact borrowers about MI cancelations

• Fannie Mae Servicing Guide B-8.1-04, Termination of Conventional Mortgage Insurance

• CFPB: When can I remove private mortgage insurance (PMI) from my loan?

• My Home by Freddie Mac: Breaking down PMI

• Georgia Association of REALTORS: Georgia Housing Market Holds Steady In 2025