PMI Cancellation in Denver: What the New Executive Order Means for Savvy Home Buyers

PMI Cancellation in Denver

If you bought a home with less than 20% down, you are probably paying private mortgage insurance every month. It is one of those line items that shows up on your closing disclosure, gets folded into your monthly payment, and mostly gets ignored until someone tells you that you might be able to get rid of it.

On October 22, 2026, the White House signed an executive order titled “Decreasing Housing Costs for the American People.” Part of what it directs could eventually change how PMI cancellation works for buyers with Fannie Mae and Freddie Mac loans. The other part could reduce title insurance costs on certain refinances.

Neither change is in effect yet. But the direction is real, and if you have PMI right now, there are things you can do today that do not require waiting for Washington.

What is PMI and why do buyers pay it?

Private mortgage insurance protects the lender, not you, if you stop making payments. Lenders require it on conventional loans when the down payment is less than 20% because the smaller your down payment, the more exposure the lender has if the loan goes bad.

PMI typically runs 0.5% to 1.5% of the loan amount per year, added to your monthly payment. On a $500,000 loan, that is $208 to $625 per month. It’s real money that goes to the insurance company, not toward your principal or equity.

The good news: PMI is not permanent. Once your loan balance drops to 80% of the original appraised value, you can request removal. Your lender is required by federal law to cancel it automatically at 78%. And if your home has appreciated, there are ways to remove it even faster.

Private mortgage insurance Colorado — how to get rid of PMI faster than you think
Does your current loan to value qualify for PMI canccellation?

What does the new executive order actually do?

It directs the Federal Housing Finance Agency (FHFA) to create a pilot program in which Fannie Mae and Freddie Mac would periodically review loans and automatically identify borrowers who appear to qualify for PMI cancellation without requiring those borrowers to ask.

Right now, most borrowers have to initiate the process themselves. Under the pilot, the servicer would run the numbers using automated valuation models, check your payment history, and notify you if you appear to qualify.

There are important caveats.

The order applies only to new loans originated after the pilot program is set up. If you have an existing mortgage, you are not covered by this. The FHFA still has to build the program, set the eligibility standards, and approve it. No timeline has been set.

The order also directs FHFA to consider allowing Fannie and Freddie to accept automated title reviews instead of a traditional lender’s title policy on eligible rate-and-term refinances. That could save refinancing borrowers $1,000 to $2,400 in closing costs if the title and appraisal requirements are both waived. But again, this applies to refinances only, not purchases, and nothing has changed yet.

The honest summary: this is a policy direction, not a policy change. It matters because it signals where things are headed. It does not help anyone today who is waiting for Washington to act before doing anything.

What can Denver buyers and homeowners do about PMI right now?

Do not wait for a pilot program. Here is what is available today.

If you bought more than two years ago and your neighborhood has appreciated: You may already be at or below 80% loan-to-value based on current market value, not your original appraisal. You can request a new appraisal and ask your servicer to remove PMI if the new appraisal supports it. Denver prices have risen significantly over the past several years even with recent softening, so a lot of buyers who put 10% down in 2021 or 2022 may be closer to elimination than they realize.

If you are approaching 80% through regular payments: Pull up your most recent mortgage statement and calculate where your balance sits relative to your original appraised value. If you are close, it may be worth accelerating a few extra payments to cross the threshold and formally request removal.

If you are buying now: Ask your lender about lender-paid PMI (LPMI), which rolls the insurance cost into a slightly higher interest rate and eliminates the monthly PMI line. In some scenarios that math works in your favor, especially if you plan to stay in the home long-term. Also ask about piggyback loan structures, which some buyers use to avoid PMI entirely with less than 20% down.

If you are on an FHA loan: The executive order does not apply to you. FHA mortgage insurance has its own rules and, for loans originated after June 2013 with less than 10% down, it generally cannot be removed at all without refinancing into a conventional loan. If your home has appreciated and your credit has improved, that conversation may be worth having with a lender.

Is this a big deal for Denver buyers?

The executive order matters most as a signal. Politicians are focused on lowering the cost of buying and owning a home, and the PMI pilot, if it actually gets built, would be a quality-of-life improvement for millions of borrowers who currently have to manage this themselves.

For Denver specifically, where median home prices still sit well above the national average, PMI adds up fast. A buyer who put 10% down on a $550,000 home two years ago might be carrying $300 to $450 per month in PMI that they could potentially eliminate today based on current values if they know to ask.

Most people do not know to ask.

How to remove PMI in Denver — Legacy 100 Real Estate Partners walking buyers through their options
Saving $400 a month feels pretty good!

What should I do if I think I qualify to remove PMI?

Start with your mortgage servicer, the company you send your payment to. Ask them what your current loan-to-value ratio is and what they require to process a PMI removal request. Most servicers require a formal appraisal or broker price opinion. Some have their own timelines and requirements beyond the federal minimums.

If you are not sure whether it makes financial sense to pay for an appraisal to remove PMI, the math is usually simple: divide the appraisal cost (typically $400 to $600 in Denver) by your monthly PMI payment. If the break-even is six months or less, it almost always makes sense to do it.

We can help you think through whether this is worth pursuing for your situation. That kind of conversation is exactly what we are here for.

Our experience. Your legacy.

Contact Legacy 100 Real Estate Partners to talk through your situation — whether you are buying, refinancing, or trying to figure out if you can get rid of PMI.

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