Quick summary: Learn how to remove PMI without refinancing, compare cancellation routes, calculate your equity target, and prepare a strong servicer request. Before you shop for a refinance, give your current mortgage a 20-minute review. If you have a conventional loan with private mortgage insurance, you may be able to remove PMI through your existing loan servicer—without replacing your mortgage, paying refinance closing costs, or giving up your current interest rate. The right route depends on what kind of mortgage insurance you have, your unpaid principal balance, the home’s accepted value, your payment history, and your servicer’s rules. An online home-value estimate alone will not cancel PMI, and reaching 20% equity does not always make the charge disappear automatically. Use this planning reset to identify your situation, choose the least expensive eligible path, and prepare a clean request for the coming week. Start with the line item on your mortgage statement F...
Updated October 9, 2026 A home equity loan and a home equity line of credit (HELOC) both borrow against your house, and both can look affordable at the start. The surprises come later: a payment that changes without a new purchase, a repayment phase that costs more, or a lender that shrinks your line. These ten answers come mainly from the Consumer Financial Protection Bureau (CFPB) and the IRS. Scope: General information for homeowners who are weighing a home equity product. It is not a recommendation to borrow. All dollar figures and interest rates in the examples are invented. Your lender’s disclosures control your actual terms. The basics 1. What is the difference between the two? The CFPB explains that a home equity loan is a set amount received in one lump sum, and the rate may be fixed or adjustable. A HELOC is a line of credit you can draw from more than once, like a credit card, and it usually has an adjustable rate. If you already have a mortgage, either one is a secon...