PMI Removal Calculator
Last verified · Methodology
Find both cancellation dates, see the total PMI you will pay before each, and check how much extra principal shortens the wait.
Your loan
The automatic 78% cancellation is based on this figure, not on today's value.
Usually 0.3% to 1.5% of the loan per year, billed monthly.
Affects the 80% request threshold, which uses current value. Requires an appraisal.
Current loan-to-value
88.8%
You can request cancellation at 80% LTV in 2 yr 5 mo. Your servicer must cancel automatically at 78% of the original price in 7 yr 6 mo.
Progress from 100% LTV toward the 80% threshold
PMI paid until 80%
$5,220
2 yr 5 mo
Saved with extra payments
$720
Reaches 80% in 2 yr 1 mo
The two PMI thresholds
They use different values, which is why the dates differ.
| Threshold | Based on | Who acts | When |
|---|---|---|---|
| 80% LTV | Current appraised value | You request it | 2 yr 5 mo |
| 78% LTV | Original purchase price | Servicer must cancel | 7 yr 6 mo |
Waiting for automatic cancellation instead of requesting at 80% costs about $10,980 in extra PMI.
Balance and LTV over time
| Month | Balance | Est. home value | LTV |
|---|---|---|---|
| 0 | $355,000 | $400,000 | 88.8% |
| 6 | $352,725 | $405,956 | 86.9% |
| 12 | $350,376 | $412,000 | 85.0% |
| 18 | $347,949 | $418,134 | 83.2% |
| 24 | $345,442 | $424,360 | 81.4% |
| 30 | $342,853 | $430,678 | 79.6% |
| 36 | $340,178 | $437,091 | 77.8% |
| 42 | $337,415 | $443,599 | 76.1% |
| 48 | $334,561 | $450,204 | 74.3% |
| 54 | $331,614 | $456,907 | 72.6% |
| 60 | $328,569 | $463,710 | 70.9% |
| 66 | $325,423 | $470,614 | 69.1% |
Shown every 6 months. Green rows are at or below the 80% request threshold.
What is PMI and why are you paying it?
Private mortgage insurance protects the lender, not you, against default. It is required on conventional loans whenever the down payment is under 20%, which means a loan-to-value ratio above 80%. It typically costs 0.3% to 1.5% of the loan amount per year, billed monthly alongside the mortgage payment.
It buys the borrower nothing except access to the loan. That is exactly why removing it as early as legally possible is one of the highest-return administrative tasks in homeownership.
The two cancellation thresholds
80% LTV: you request it
Once the balance falls to 80% of value, you can submit a written request. The important detail is that this route can use the current appraised value, so appreciation counts. In a market that has risen, this can arrive years before the amortization schedule alone would suggest.
Servicers generally require a clean payment history, no second lien, and an appraisal or broker price opinion at your expense if you are relying on appreciation rather than principal paydown.
78% LTV: it happens automatically
Under the Homeowners Protection Act, the servicer must cancel PMI once the balance reaches 78% of the original purchase price, provided payments are current. Appreciation is irrelevant here. No request and no appraisal are needed, but you also have no control over the timing.
There is also a midpoint rule: PMI must terminate at the halfway point of the amortization schedule regardless of LTV, which matters mainly for loans that have been modified.
Three ways to get there faster
- Extra principal payments. The most reliable route. An extra $200 per month on a typical loan can pull the 80% date forward by roughly two years.
- A value-based request after appreciation. Costs an appraisal but requires no cash toward principal. Best in markets that have moved sharply.
- A lump sum plus recast. Drops the balance and lowers the payment at the same time. See the mortgage recast calculator.
The FHA exception
FHA loans do not carry PMI. They carry MIP, and the rules are far less friendly. For most FHA loans originated after June 2013 with less than 10% down, mortgage insurance lasts for the life of the loan no matter how much equity accumulates. The only exit is refinancing into a conventional loan once you hold 20% equity.
For borrowers in that position, the relevant comparison is the cost of refinancing against the remaining MIP stream. The refinance calculator gives the break-even.
Model the rest of the payment
Model the full payment with PMI included using the mortgage calculator, see exactly how extra payments reshape the schedule in the amortization calculator, or read the definition of PMI and loan-to-value in the glossary.
There are two moments. At 80% loan-to-value you can submit a written request to your servicer to cancel PMI. At 78% loan-to-value, measured against the original purchase price, the servicer must cancel it automatically under the Homeowners Protection Act, provided you are current on payments. Requesting at 80% rather than waiting for 78% typically saves several months of premiums.
The 80% threshold is a request you make, and it can be based on the current appraised value, which means appreciation counts. The 78% threshold is automatic and is calculated from the original purchase price only, so appreciation is irrelevant. This is why a home that has risen in value can often shed PMI far earlier through a request at 80% than by waiting for the automatic 78% date.
Yes, but only through the request route. If your home has appreciated enough that the balance is now under 80% of current market value, you can ask the servicer to cancel. They will usually require a broker price opinion or a full appraisal at your expense, typically $300 to $600. Most servicers also require at least two years of payment history and a clean record before considering a value-based request.
Send a written request to your loan servicer. Include the loan number, a statement that you are requesting PMI cancellation under the Homeowners Protection Act, and evidence supporting the current value if you are relying on appreciation. Requirements are that you are current on payments, have no 30 day late payments in the past year and no 60 day lates in the past two years, and that there is no second lien on the property.
No, and this trips up many buyers. FHA loans carry MIP rather than PMI, and for most loans originated since June 2013 with less than 10% down, MIP lasts the entire life of the loan regardless of how much equity you build. The only way out is to refinance into a conventional loan once you have 20% equity. If you have an FHA loan, this calculator shows your equity timeline but not an automatic cancellation date.
Typically 0.3% to 1.5% of the loan amount per year, driven mostly by credit score and down payment size. On a $355,000 loan at 0.6%, that is about $178 per month or $2,130 per year. Over the roughly seven years it commonly takes to reach 80% LTV with standard payments, that adds up to about $15,000, which is why accelerating the timeline is worth real money.
Mortgage Calculator
Estimate monthly mortgage payments including taxes, insurance, and PMI.
Amortization Calculator
Full amortization schedule with extra payment impact and year-by-year breakdown.
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