PMI Removal Calculator
Estimate when your equity threshold may qualify you to eliminate Private Mortgage Insurance and permanently lower your monthly payment.
Private Mortgage Insurance (PMI) is a monthly cost that may end once you have built sufficient equity in your home. Under the Homeowners Protection Act of 1998 (HPA), eligible borrowers may request PMI cancellation when their loan-to-value (LTV) ratio reaches 80%. Use this calculator to estimate your cancellation timing, principal target, and potential savings based on your loan details.
PMI Removal Calculator Inputs
Review your results, then use the action plan to prepare your PMI request.
PMI ACTIVE
Current LTV: 87.5% (above 80%)
MONTH 77
Baseline estimate: Month 77
| Metric | Estimate | Potential impact |
|---|---|---|
| 80% LTV cancellation | Month 77 | Threshold tracked |
| Monthly PMI | $150/mo | Potential payment reduction |
| Projected PMI saved | $0 | Based on reaching 80% LTV |
PMI Removal Date & Savings
Baseline vs Accelerated
| Milestone / Metric | Baseline Schedule | Accelerated Schedule | Net Difference |
|---|---|---|---|
| 80% LTV Cancellation* | Month 77 (Yr 6.4) | Month 77 (Yr 6.4) | No change |
| 78% LTV Auto-Termination** | Month 93 (Yr 7.8) | Fixed** | N/A |
| Total PMI Paid* | $11,400 | $11,400 | $0 difference |
* 80% LTV Cancellation: The projected date your modeled balance reaches the HPA threshold to request PMI removal in writing.
** 78% LTV Auto-Termination: By federal law, automatic lender termination is strictly pinned to your original baseline schedule. To realize accelerated savings, you must actively request cancellation at the 80% mark.
Consistent Equity Building
You are currently on track with standard amortization. Adding even a modest extra monthly principal payment ($50-$100/mo) will drastically compound your equity growth and bring your 80% LTV cancellation date forward by several months.
PMI Elimination Trajectory
Loan-to-Value (LTV) Ratio vs Thresholds
80% LTV Cancellation Milestone
Your loan reaches the 80% LTV cancellation threshold at Month 77 (Year 6.4). You can contact your servicer at this exact milestone to request formal PMI removal.
78% LTV Automatic Termination
By federal law (Homeowners Protection Act), if you do not actively request cancellation at 80%, your lender is required to automatically terminate your PMI once your amortization schedule reaches 78% LTV. Tracking and acting at the 80% mark ensures you don't pay unnecessary premiums during that gap.
Your PMI Removal Action Plan
Eligibility, payoff targets, savings, and the next request to send your servicer.
PMI Removal Schedule
Baseline and accelerated balance, LTV, and PMI status by month.
| Month | Year | Baseline balance | Accelerated balance | Baseline LTV | Accelerated LTV | PMI status |
|---|---|---|---|---|---|---|
| 0 | 0.0 | $350,000 | $350,000 | 87.50% | 87.50% | Active / Active |
| 1 | 0.1 | $349,684 | $349,684 | 87.42% | 87.42% | Active / Active |
| 2 | 0.2 | $349,365 | $349,365 | 87.34% | 87.34% | Active / Active |
| 3 | 0.3 | $349,046 | $349,046 | 87.26% | 87.26% | Active / Active |
| 4 | 0.3 | $348,724 | $348,724 | 87.18% | 87.18% | Active / Active |
| 5 | 0.4 | $348,401 | $348,401 | 87.10% | 87.10% | Active / Active |
| 6 | 0.5 | $348,076 | $348,076 | 87.02% | 87.02% | Active / Active |
| 7 | 0.6 | $347,749 | $347,749 | 86.94% | 86.94% | Active / Active |
| 8 | 0.7 | $347,420 | $347,420 | 86.86% | 86.86% | Active / Active |
| 9 | 0.8 | $347,090 | $347,090 | 86.77% | 86.77% | Active / Active |
| 10 | 0.8 | $346,758 | $346,758 | 86.69% | 86.69% | Active / Active |
| 11 | 0.9 | $346,424 | $346,424 | 86.61% | 86.61% | Active / Active |
| 12 | 1.0 | $346,088 | $346,088 | 86.52% | 86.52% | Active / Active |
| 13 | 1.1 | $345,750 | $345,750 | 86.44% | 86.44% | Active / Active |
| 14 | 1.2 | $345,411 | $345,411 | 86.35% | 86.35% | Active / Active |
| 15 | 1.3 | $345,070 | $345,070 | 86.27% | 86.27% | Active / Active |
| 16 | 1.3 | $344,727 | $344,727 | 86.18% | 86.18% | Active / Active |
| 17 | 1.4 | $344,382 | $344,382 | 86.10% | 86.10% | Active / Active |
| 18 | 1.5 | $344,035 | $344,035 | 86.01% | 86.01% | Active / Active |
| 19 | 1.6 | $343,686 | $343,686 | 85.92% | 85.92% | Active / Active |
| 20 | 1.7 | $343,335 | $343,335 | 85.83% | 85.83% | Active / Active |
| 21 | 1.8 | $342,983 | $342,983 | 85.75% | 85.75% | Active / Active |
| 22 | 1.8 | $342,629 | $342,629 | 85.66% | 85.66% | Active / Active |
| 23 | 1.9 | $342,272 | $342,272 | 85.57% | 85.57% | Active / Active |
| 24 | 2.0 | $341,914 | $341,914 | 85.48% | 85.48% | Active / Active |
| 25 | 2.1 | $341,554 | $341,554 | 85.39% | 85.39% | Active / Active |
| 26 | 2.2 | $341,192 | $341,192 | 85.30% | 85.30% | Active / Active |
| 27 | 2.3 | $340,827 | $340,827 | 85.21% | 85.21% | Active / Active |
| 28 | 2.3 | $340,461 | $340,461 | 85.12% | 85.12% | Active / Active |
| 29 | 2.4 | $340,093 | $340,093 | 85.02% | 85.02% | Active / Active |
| 30 | 2.5 | $339,723 | $339,723 | 84.93% | 84.93% | Active / Active |
| 31 | 2.6 | $339,351 | $339,351 | 84.84% | 84.84% | Active / Active |
| 32 | 2.7 | $338,977 | $338,977 | 84.74% | 84.74% | Active / Active |
| 33 | 2.8 | $338,601 | $338,601 | 84.65% | 84.65% | Active / Active |
| 34 | 2.8 | $338,223 | $338,223 | 84.56% | 84.56% | Active / Active |
| 35 | 2.9 | $337,843 | $337,843 | 84.46% | 84.46% | Active / Active |
| 36 | 3.0 | $337,460 | $337,460 | 84.37% | 84.37% | Active / Active |
| 37 | 3.1 | $337,076 | $337,076 | 84.27% | 84.27% | Active / Active |
| 38 | 3.2 | $336,690 | $336,690 | 84.17% | 84.17% | Active / Active |
| 39 | 3.3 | $336,301 | $336,301 | 84.08% | 84.08% | Active / Active |
| 40 | 3.3 | $335,910 | $335,910 | 83.98% | 83.98% | Active / Active |
| 41 | 3.4 | $335,518 | $335,518 | 83.88% | 83.88% | Active / Active |
| 42 | 3.5 | $335,123 | $335,123 | 83.78% | 83.78% | Active / Active |
| 43 | 3.6 | $334,726 | $334,726 | 83.68% | 83.68% | Active / Active |
| 44 | 3.7 | $334,327 | $334,327 | 83.58% | 83.58% | Active / Active |
| 45 | 3.8 | $333,925 | $333,925 | 83.48% | 83.48% | Active / Active |
| 46 | 3.8 | $333,522 | $333,522 | 83.38% | 83.38% | Active / Active |
| 47 | 3.9 | $333,116 | $333,116 | 83.28% | 83.28% | Active / Active |
| 48 | 4.0 | $332,709 | $332,709 | 83.18% | 83.18% | Active / Active |
| 49 | 4.1 | $332,298 | $332,298 | 83.07% | 83.07% | Active / Active |
| 50 | 4.2 | $331,886 | $331,886 | 82.97% | 82.97% | Active / Active |
| 51 | 4.3 | $331,472 | $331,472 | 82.87% | 82.87% | Active / Active |
| 52 | 4.3 | $331,055 | $331,055 | 82.76% | 82.76% | Active / Active |
| 53 | 4.4 | $330,636 | $330,636 | 82.66% | 82.66% | Active / Active |
| 54 | 4.5 | $330,215 | $330,215 | 82.55% | 82.55% | Active / Active |
| 55 | 4.6 | $329,791 | $329,791 | 82.45% | 82.45% | Active / Active |
| 56 | 4.7 | $329,365 | $329,365 | 82.34% | 82.34% | Active / Active |
| 57 | 4.8 | $328,937 | $328,937 | 82.23% | 82.23% | Active / Active |
| 58 | 4.8 | $328,506 | $328,506 | 82.13% | 82.13% | Active / Active |
| 59 | 4.9 | $328,074 | $328,074 | 82.02% | 82.02% | Active / Active |
| 60 | 5.0 | $327,638 | $327,638 | 81.91% | 81.91% | Active / Active |
| 61 | 5.1 | $327,201 | $327,201 | 81.80% | 81.80% | Active / Active |
| 62 | 5.2 | $326,761 | $326,761 | 81.69% | 81.69% | Active / Active |
| 63 | 5.3 | $326,319 | $326,319 | 81.58% | 81.58% | Active / Active |
| 64 | 5.3 | $325,874 | $325,874 | 81.47% | 81.47% | Active / Active |
| 65 | 5.4 | $325,427 | $325,427 | 81.36% | 81.36% | Active / Active |
| 66 | 5.5 | $324,977 | $324,977 | 81.24% | 81.24% | Active / Active |
| 67 | 5.6 | $324,525 | $324,525 | 81.13% | 81.13% | Active / Active |
| 68 | 5.7 | $324,071 | $324,071 | 81.02% | 81.02% | Active / Active |
| 69 | 5.8 | $323,614 | $323,614 | 80.90% | 80.90% | Active / Active |
| 70 | 5.8 | $323,155 | $323,155 | 80.79% | 80.79% | Active / Active |
| 71 | 5.9 | $322,693 | $322,693 | 80.67% | 80.67% | Active / Active |
| 72 | 6.0 | $322,229 | $322,229 | 80.56% | 80.56% | Active / Active |
| 73 | 6.1 | $321,762 | $321,762 | 80.44% | 80.44% | Active / Active |
| 74 | 6.2 | $321,293 | $321,293 | 80.32% | 80.32% | Active / Active |
| 75 | 6.3 | $320,821 | $320,821 | 80.21% | 80.21% | Active / Active |
| 76 | 6.3 | $320,346 | $320,346 | 80.09% | 80.09% | Active / Active |
| 77 | 6.4 | $319,869 | $319,869 | 79.97% | 79.97% | Removed / Removed |
| 78 | 6.5 | $319,390 | $319,390 | 79.85% | 79.85% | Removed / Removed |
| 79 | 6.6 | $318,907 | $318,907 | 79.73% | 79.73% | Removed / Removed |
| 80 | 6.7 | $318,423 | $318,423 | 79.61% | 79.61% | Removed / Removed |
| 81 | 6.8 | $317,935 | $317,935 | 79.48% | 79.48% | Removed / Removed |
| 82 | 6.8 | $317,445 | $317,445 | 79.36% | 79.36% | Removed / Removed |
| 83 | 6.9 | $316,952 | $316,952 | 79.24% | 79.24% | Removed / Removed |
| 84 | 7.0 | $316,457 | $316,457 | 79.11% | 79.11% | Removed / Removed |
| 85 | 7.1 | $315,959 | $315,959 | 78.99% | 78.99% | Removed / Removed |
| 86 | 7.2 | $315,458 | $315,458 | 78.86% | 78.86% | Removed / Removed |
| 87 | 7.3 | $314,954 | $314,954 | 78.74% | 78.74% | Removed / Removed |
| 88 | 7.3 | $314,448 | $314,448 | 78.61% | 78.61% | Removed / Removed |
| 89 | 7.4 | $313,939 | $313,939 | 78.48% | 78.48% | Removed / Removed |
| 90 | 7.5 | $313,428 | $313,428 | 78.36% | 78.36% | Removed / Removed |
| 91 | 7.6 | $312,913 | $312,913 | 78.23% | 78.23% | Removed / Removed |
| 92 | 7.7 | $312,396 | $312,396 | 78.10% | 78.10% | Removed / Removed |
| 93 | 7.8 | $311,876 | $311,876 | 77.97% | 77.97% | Removed / Removed |
| 94 | 7.8 | $311,353 | $311,353 | 77.84% | 77.84% | Removed / Removed |
| 95 | 7.9 | $310,827 | $310,827 | 77.71% | 77.71% | Removed / Removed |
| 96 | 8.0 | $310,298 | $310,298 | 77.57% | 77.57% | Removed / Removed |
| 97 | 8.1 | $309,767 | $309,767 | 77.44% | 77.44% | Removed / Removed |
| 98 | 8.2 | $309,233 | $309,233 | 77.31% | 77.31% | Removed / Removed |
| 99 | 8.3 | $308,695 | $308,695 | 77.17% | 77.17% | Removed / Removed |
| 100 | 8.3 | $308,155 | $308,155 | 77.04% | 77.04% | Removed / Removed |
| 101 | 8.4 | $307,612 | $307,612 | 76.90% | 76.90% | Removed / Removed |
| 102 | 8.5 | $307,066 | $307,066 | 76.77% | 76.77% | Removed / Removed |
| 103 | 8.6 | $306,517 | $306,517 | 76.63% | 76.63% | Removed / Removed |
| 104 | 8.7 | $305,965 | $305,965 | 76.49% | 76.49% | Removed / Removed |
| 105 | 8.8 | $305,410 | $305,410 | 76.35% | 76.35% | Removed / Removed |
| 106 | 8.8 | $304,852 | $304,852 | 76.21% | 76.21% | Removed / Removed |
| 107 | 8.9 | $304,291 | $304,291 | 76.07% | 76.07% | Removed / Removed |
| 108 | 9.0 | $303,727 | $303,727 | 75.93% | 75.93% | Removed / Removed |
| 109 | 9.1 | $303,160 | $303,160 | 75.79% | 75.79% | Removed / Removed |
| 110 | 9.2 | $302,590 | $302,590 | 75.65% | 75.65% | Removed / Removed |
| 111 | 9.3 | $302,017 | $302,017 | 75.50% | 75.50% | Removed / Removed |
| 112 | 9.3 | $301,441 | $301,441 | 75.36% | 75.36% | Removed / Removed |
| 113 | 9.4 | $300,861 | $300,861 | 75.22% | 75.22% | Removed / Removed |
| 114 | 9.5 | $300,279 | $300,279 | 75.07% | 75.07% | Removed / Removed |
| 115 | 9.6 | $299,693 | $299,693 | 74.92% | 74.92% | Removed / Removed |
| 116 | 9.7 | $299,104 | $299,104 | 74.78% | 74.78% | Removed / Removed |
| 117 | 9.8 | $298,512 | $298,512 | 74.63% | 74.63% | Removed / Removed |
| 118 | 9.8 | $297,917 | $297,917 | 74.48% | 74.48% | Removed / Removed |
| 119 | 9.9 | $297,318 | $297,318 | 74.33% | 74.33% | Removed / Removed |
| 120 | 10.0 | $296,716 | $296,716 | 74.18% | 74.18% | Removed / Removed |
| 121 | 10.1 | $296,111 | $296,111 | 74.03% | 74.03% | Removed / Removed |
| 122 | 10.2 | $295,503 | $295,503 | 73.88% | 73.88% | Removed / Removed |
| 123 | 10.3 | $294,892 | $294,892 | 73.72% | 73.72% | Removed / Removed |
| 124 | 10.3 | $294,277 | $294,277 | 73.57% | 73.57% | Removed / Removed |
| 125 | 10.4 | $293,658 | $293,658 | 73.41% | 73.41% | Removed / Removed |
| 126 | 10.5 | $293,037 | $293,037 | 73.26% | 73.26% | Removed / Removed |
| 127 | 10.6 | $292,412 | $292,412 | 73.10% | 73.10% | Removed / Removed |
| 128 | 10.7 | $291,783 | $291,783 | 72.95% | 72.95% | Removed / Removed |
| 129 | 10.8 | $291,152 | $291,152 | 72.79% | 72.79% | Removed / Removed |
| 130 | 10.8 | $290,517 | $290,517 | 72.63% | 72.63% | Removed / Removed |
| 131 | 10.9 | $289,878 | $289,878 | 72.47% | 72.47% | Removed / Removed |
| 132 | 11.0 | $289,236 | $289,236 | 72.31% | 72.31% | Removed / Removed |
| 133 | 11.1 | $288,590 | $288,590 | 72.15% | 72.15% | Removed / Removed |
| 134 | 11.2 | $287,941 | $287,941 | 71.99% | 71.99% | Removed / Removed |
| 135 | 11.3 | $287,289 | $287,289 | 71.82% | 71.82% | Removed / Removed |
| 136 | 11.3 | $286,633 | $286,633 | 71.66% | 71.66% | Removed / Removed |
| 137 | 11.4 | $285,973 | $285,973 | 71.49% | 71.49% | Removed / Removed |
| 138 | 11.5 | $285,310 | $285,310 | 71.33% | 71.33% | Removed / Removed |
| 139 | 11.6 | $284,643 | $284,643 | 71.16% | 71.16% | Removed / Removed |
| 140 | 11.7 | $283,973 | $283,973 | 70.99% | 70.99% | Removed / Removed |
| 141 | 11.8 | $283,299 | $283,299 | 70.82% | 70.82% | Removed / Removed |
| 142 | 11.8 | $282,621 | $282,621 | 70.66% | 70.66% | Removed / Removed |
| 143 | 11.9 | $281,939 | $281,939 | 70.48% | 70.48% | Removed / Removed |
| 144 | 12.0 | $281,254 | $281,254 | 70.31% | 70.31% | Removed / Removed |
| 145 | 12.1 | $280,566 | $280,566 | 70.14% | 70.14% | Removed / Removed |
| 146 | 12.2 | $279,873 | $279,873 | 69.97% | 69.97% | Removed / Removed |
80% eligibility
Estimated at Month 77
Conventional loan, payment history, and servicer rules still apply.
Principal needed for 80%
$30,000
Target balance: $320,000
Principal needed for 78%
$38,000
Target balance: $312,000
Projected savings
$0
Plus $150 less each month after removal.
PMI cancellation request letter
Fill in the blanks, confirm your servicer’s requirements, and send it when eligible.
Subject: Request to Cancel Private Mortgage Insurance (PMI) Dear Loan Servicer, I am writing to request cancellation of the private mortgage insurance (PMI) on my mortgage under the Homeowners Protection Act of 1998. Based on my records, my current loan balance is approximately $350,000, and the original property value used for this request was $400,000. This places the loan at approximately 87.5% LTV. Please review my account and let me know what documentation, valuation, or payment-history requirements you need to process this request. Please also confirm the date PMI will be removed and the resulting payment change. Borrower name: ____________________ Property address: ____________________ Mortgage account number: ____________________ Phone/email: ____________________ Sincerely, ____________________
This is a planning template, not legal advice. PMI rules vary by loan type and servicer; ask your servicer for its exact cancellation process.
PMI Removal: The Complete Guide
Learn when and how to eliminate private mortgage insurance and lower your monthly payment.
1What Is PMI and Why Do You Pay It?
Private mortgage insurance (PMI) is a monthly premium tacked onto your mortgage payment. Lenders require it when your down payment is less than 20% of the home's purchase price. The insurance protects the lender, not you. If you default, PMI reimburses the lender for their loss.
PMI costs are based on your loan-to-value ratio (LTV), credit score, and loan size. Annual premiums typically range from 0.5% to 1.5% of the original loan amount. On a $350,000 loan, that means you could be paying $150 to $450 every month for insurance you get zero benefit from.
Unlike the interest on your loan, PMI is not tax-deductible for most homeowners. It is a pure cost. Getting rid of PMI as soon as you qualify is one of the fastest ways to permanently reduce your monthly housing expense without touching your interest rate or loan term.
2When Does PMI Go Away?
PMI can be removed at three points: 80% LTV (you request it), 78% LTV (automatic by law), or the midpoint of your loan term (month 180 on a 30-year mortgage). You can also remove it early through extra payments, a lump sum, or an appraisal if your home value has gone up. Use the calculator above to estimate the timing for your loan.
Source for the federal 80% and 78% rules: Consumer Financial Protection Bureau. Loan type and servicer requirements may differ.
3What LTV Ratio Removes PMI?
For many conventional mortgages, you can request PMI cancellation when your loan-to-value ratio reaches 80%; meaning you have about 20% equity based on the home's original value. Automatic termination generally occurs at 78% LTV under the scheduled amortization rules, assuming the account meets the applicable requirements.
Calculate LTV with this formula: LTV = current loan balance ÷ original home value × 100. For example, a $320,000 balance on a $400,000 original value is 80% LTV. The relevant original value is generally the purchase price or appraised value at closing, not today's market estimate.
| LTV | What it generally means |
|---|---|
| 80% | You may request cancellation of conventional PMI, subject to servicer requirements. |
| 78% | PMI may automatically terminate under the original amortization schedule. |
| 75% | Below the standard request threshold; contact the servicer if PMI is still being charged. |
| 70% | A strong equity position that may support a PMI review. |
| 60% | Well below the standard threshold; ask the servicer to review any remaining PMI charge. |
4How Much Principal Do I Need to Pay to Remove PMI?
To estimate the principal needed for PMI removal, subtract 80% of your original home value from your current loan balance. If your balance is already below that target, you may be able to request cancellation now; if it is above the target, the difference is the estimated principal still needed before making a request.
This calculator also models extra monthly principal and a one-time lump sum. Those payments can move your PMI removal date forward, but you still need to contact your servicer and satisfy its payment-history, lien, valuation, and other requirements.
6PMI Removal on a 30-Year Mortgage
On a 30-year mortgage, the midpoint is month 180. Automatic termination at 78% LTV is based on the original amortization schedule, while extra principal payments can help you reach the 80% request threshold earlier. Use the calculator to compare your baseline PMI payoff timeline with an accelerated schedule.
5PMI Automatic Termination and Cancellation Rules
Under the Homeowners Protection Act of 1998, there are three ways PMI can be removed from a conventional loan:
80% LTV: Borrower Request
Once your loan balance drops to 80% of the original purchase price, you can submit a written request to cancel PMI. You need a good payment history. No 30-day late payments in the past 12 months, no 60-day late payments in the past 24 months, and no subordinate liens on the property.
78% LTV: Automatic Termination
When your loan balance hits 78% of the original value based on the original amortization schedule, the lender must cancel PMI automatically. You do not need to ask. As long as your payments are current, it happens on its own. The date is set the day you close the loan.
Midpoint Rule
PMI must be terminated at the halfway point of your loan term, regardless of your LTV. On a 30-year mortgage, that is month 180. Even if your balance is still above 78% LTV at that point, the lender has to cancel PMI as long as your payments are current.
Four Ways to Remove PMI Faster
Waiting for the automatic termination date can take years. These strategies get PMI removed much sooner:
- Make extra principal payments each month. Adding even $100 to $300 extra per month toward your principal pushes your balance below 80% LTV months or years earlier. The PMI calculator above lets you model exactly how much time you can cut off.
- Apply a one-time lump sum to your principal. An inheritance, bonus, or tax refund applied directly to your loan balance can put you below 80% LTV immediately. You do not need to recast to cancel PMI. Just making the principal payment is enough to trigger the 80% threshold.
- Order a new appraisal if your home value has gone up. If market appreciation or renovations have increased your home's value, your LTV may already be below 80% even without extra payments. Contact your servicer to request a Broker Price Opinion (BPO) or a full appraisal. Appraisals typically cost $400 to $600 and are usually accepted for this purpose. BPOs are cheaper, around $150 to $200, but not all servicers accept them.
- Refinance into a conventional loan without PMI. If your home value has risen enough that a new loan would be at or below 80% LTV, a refinance eliminates PMI entirely. This only makes sense if current rates are not higher than your existing rate, or if your existing loan is FHA and carries permanent MIP. Use our HELOC vs. Refi calculator to run the numbers.
PMI Removal vs. Refinancing to Remove PMI
| Feature | PMI Removal (HPA) | Refinance |
|---|---|---|
| Preserves interest rate | Yes | No. Resets to market |
| Cost | $0 to $600 (appraisal) | 2% to 4% of loan |
| Credit check | No | Yes |
| Works for FHA loans | No | Yes (conventional refi) |
| Resets loan term | No | Yes. New 15 or 30 years |
FHA Loans and Mortgage Insurance Premium (MIP)
FHA loans carry Mortgage Insurance Premium (MIP), not PMI. The rules for removing it are different and much less flexible.
For FHA loans originated after June 2013, MIP lasts for the entire life of the loan if your down payment was less than 10%. If you put down 10% or more, MIP is canceled after 11 years. Either way, you cannot cancel it at 80% LTV or 78% LTV the way you can with conventional PMI. The Homeowners Protection Act applies only to conventional PMI, not FHA MIP. For most FHA borrowers, the only way out of mortgage insurance is to refinance into a conventional loan once you reach 20% equity.
FHA loans originated before June 2013 have different rules. MIP on those loans can be canceled once the loan reaches 78% LTV and at least 5 years of premiums have been paid. Check your closing documents or contact your servicer if you are unsure which rules apply to your loan.
4How to Use This PMI Removal Calculator
Enter your home value, current loan balance, interest rate, monthly PMI cost, and any extra monthly payment or lump sum you are considering. The calculator shows:
- The projected date your LTV hits 80% (when you may request cancellation)
- The projected date your LTV hits 78% (when automatic termination may apply)
- How much sooner extra payments or a lump sum move those dates forward
- Your total PMI savings by accelerating removal
- A year-by-year comparison table with your balance, equity, and cumulative PMI paid
All calculations happen in your browser. No mortgage data gets sent anywhere. Use the sliders to test different extra payment amounts and see how many months of PMI you can eliminate.
How We Calculate This
The PMI removal timeline uses your loan balance and home value to compute your loan-to-value ratio: LTV = (Loan Balance / Home Value) x 100. The calculator projects your balance forward each month using the standard amortization formula, subtracting any extra monthly payments or lump sums you specify.
The 80% LTV date marks when you can request PMI cancellation, and the 78% LTV date marks when your lender must automatically terminate it. Both thresholds are established by the Homeowners Protection Act of 1998. All calculations run locally in your browser. No data leaves your device.
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PMI Removal Frequently Asked Questions
Everything you need to know about eliminating Private Mortgage Insurance.
1What is PMI (Private Mortgage Insurance)?
Private Mortgage Insurance is a monthly premium added to your mortgage payment if your down payment was less than 20% of the purchase price. It protects the lender in case of default, but offers no financial benefit to the homeowner. Eliminating it is one of the easiest ways to permanently reduce your monthly overhead.
2What is the difference between the 80% LTV and 78% LTV rules?
Under the Homeowners Protection Act, 80% LTV is the point where you, the borrower, have the legal right to request PMI cancellation in writing. 78% LTV is the point where the lender is legally mandated to automatically terminate PMI based on your original amortization schedule, without you needing to ask.
3Can I use a new home appraisal to remove PMI earlier?
Yes! If your property has appreciated in value due to market conditions or home improvements, your Loan-to-Value ratio decreases. You can contact your lender to request a Broker Price Opinion (BPO) or formal appraisal. If the new valuation places your remaining loan balance at or below 80% LTV, PMI can be removed.
4Does paying extra principal help remove PMI faster?
Making extra monthly principal payments or injecting a one-time lump sum can accelerate your loan balance paydown. Under the calculator assumptions, this may bring forward when your mortgage crosses the 80% LTV threshold and reduce projected PMI premiums.
5What are the requirements to request PMI cancellation at 80% LTV?
You must submit a written request to your servicer, have a good payment history (no payments 30+ days late in the past 12 months, and no 60+ days late in the past 24 months), and certify that there are no subordinate liens (like a second mortgage) on the property.
6What happens if my loan reaches the midpoint of its term?
The Homeowners Protection Act includes a 'midpoint rule'. Regardless of your loan balance or LTV ratio, your lender must automatically terminate PMI at the exact midpoint of your loan term (for example, month 180 of a 30-year mortgage), provided your payments are current.
7Can I remove PMI early if my home value increases?
Yes! If home price appreciation or home improvements push your loan balance below 80% of the new appraised value, you can request PMI cancellation. Most lenders require a new appraisal or a Broker Price Opinion (BPO), a good payment history, and a seasoning period (typically 2 years) before they will approve removal based on appreciation.
8How do I write a PMI removal request letter to my lender?
Your written request should state your mortgage account number, list your current loan balance, assert that your Loan-to-Value (LTV) ratio has reached 80% (either via normal amortization or market appreciation), and request formal cancellation of Private Mortgage Insurance under the Homeowners Protection Act of 1998. It is highly recommended to call your servicer first to check if they have a specific form they require you to fill out.
9Can I remove PMI without refinancing?
Yes! Under the Homeowners Protection Act, you can cancel conventional PMI without refinancing. You simply request cancellation in writing once your loan balance reaches 80% LTV of the original value, or let it auto-terminate at 78% LTV. This saves you thousands of dollars in closing costs compared to a full refinance.
10How long does it take for a lender to cancel PMI once requested?
It typically takes 30 to 60 days for a loan servicer to process and approve a PMI removal request. Lenders must review your payment history, certify there are no subordinate liens, and may order a Broker Price Opinion (BPO) or appraisal to verify the home's value.
11Can I remove PMI if my Loan-to-Value (LTV) is below 80% (e.g., 70% or 60% LTV)?
A conventional loan below 80% LTV is below the commonly used request threshold. You may have enough equity to request cancellation, but payment history, liens, property value, loan terms, and servicer requirements still apply. If you are still paying monthly PMI at 60% LTV, contact your servicer and ask for a cancellation review.
12What loan-to-value ratio removes PMI?
For many conventional mortgages, you may request PMI cancellation at 80% LTV based on the home's original value. Automatic termination generally occurs at 78% LTV under the original amortization schedule, assuming the applicable requirements are met. Your servicer makes the final determination.
13How do I calculate LTV to remove PMI?
Divide your current mortgage balance by the original home value used for the loan, then multiply by 100. For example, a $320,000 balance divided by a $400,000 original value equals 80% LTV. The original value is generally the purchase price or appraised value at closing, not today's market estimate.
14How much principal do I need to pay to remove PMI?
Estimate the amount by subtracting 80% of your original home value from your current loan balance. If the result is zero or less, you may already be at the request threshold. Extra principal payments or a lump sum can move the date forward, but your servicer may still require a written request and other conditions.
15Does PMI come off automatically?
For many conventional loans, PMI is generally scheduled for automatic termination when the balance reaches 78% of the original value, provided payments are current and other applicable conditions are met. You can usually request cancellation earlier at 80% LTV. FHA MIP follows different rules.
16Can PMI be removed if my home value increases?
Possibly. If appreciation or improvements reduce your LTV enough, your servicer may allow a value-based PMI review. The servicer may require a new appraisal or Broker Price Opinion, a payment-history review, and a seasoning period. Ask your servicer for its specific policy before ordering a valuation.
17Does an FHA loan use the same PMI removal rules?
No. FHA loans use mortgage insurance premium (MIP), not conventional PMI, and MIP cancellation rules depend on the loan's origination date and down payment. Reaching 80% or 78% LTV does not automatically create the same cancellation right as it does for conventional PMI.
18Is 75% LTV low enough to remove PMI?
A 75% LTV is below the commonly used 80% request threshold for conventional PMI. You may have enough equity to request cancellation, but your servicer may still review payment history, liens, property value, and other loan-specific requirements.
19Can I remove PMI with a 60% LTV?
A 60% LTV is well below the standard 80% request threshold. If you are still being charged conventional PMI at that level, contact your servicer and ask for a cancellation review. Approval is still subject to the terms of your loan and the servicer's requirements.
20How long does PMI removal take after I request it?
Processing time varies by servicer. The servicer may review your payment history, subordinate liens, property value, and any required appraisal or Broker Price Opinion before confirming the cancellation date. Ask your servicer for its current timeline and required documentation.