PMI Removal Calculator
Find out exactly when you can request private mortgage insurance (PMI) removal and when it automatically terminates under the federal Homeowners Protection Act. Enter your loan details to see both milestone dates and the total PMI you will pay before removal.
The PMI Removal Calculator is a free, browser-based tool that finds the exact month private mortgage insurance drops off a conventional loan. It amortizes your loan to the 80% LTV request date and the 78% automatic-termination date required by federal law, and shows how much extra principal moves that date.
What Is PMI and When Does It Drop Off?
Private mortgage insurance (PMI) is required on conventional mortgages when your down payment is less than 20%. It protects the lender, not you, against default. Under the Homeowners Protection Act of 1998, PMI must automatically terminate when your loan balance reaches 78% of the original home value (scheduled, on the normal amortization path). You can also request cancellation once you reach 80% LTV — either through scheduled payments, extra principal, or documented home appreciation.
80% Borrower Request vs 78% Automatic
The 80% threshold is a request-based right. You must submit a written request, be current on payments, have no second liens, and sometimes pay for a new appraisal. The 78% threshold is automatic — the servicer must cancel PMI at the scheduled 78% point without any action from you. Midpoint cancellation is also mandated at the halfway point of the loan term (year 15 of a 30-year), even if LTV has not dropped to 78%.
How Extra Payments Accelerate PMI Removal
Adding just $100 a month in extra principal on a $400,000 loan can shave 2-3 years off the time to 80% LTV. The PMI premium itself (typically 0.5%-1.5% of the loan annually) makes every extra dollar of principal doubly valuable: you save interest on the main loan plus you retire the PMI cost sooner. This calculator projects removal dates both with and without your extra payments so you can quantify the payoff.
Can Home Appreciation Remove PMI Faster?
Yes — if your home has risen in value, you can request PMI cancellation when the current LTV (based on current appraised value, not purchase price) reaches 80%, assuming you have owned the home at least 2 years and 5 years for Freddie Mac loans. You will typically need to pay $400-600 for an appraisal. If the property has appreciated significantly, this can drop PMI years ahead of the amortization-based schedule.
PMI Removal Calculator: What to Do If Your Servicer Refuses
The most common failure point is not the math — it is the servicer saying no. The Homeowners Protection Act gives you four conditions you must meet for the 80% borrower request: a written request, a payment history with no 30-day late in the past 12 months and no 60-day late in the past 24, no subordinate liens, and evidence the value has not declined below original value. Under 12 U.S.C. 4902 the servicer must stop collecting premiums within 30 days of receiving your request and the supporting evidence. Keep the calculator's projected 78% date: at that scheduled point cancellation is automatic, and the same statute sets a hard backstop — PMI cannot be charged past the first day of the month after the midpoint of the amortization period (year 15 of a 30-year loan) if you are current, regardless of LTV.
PMI vs FHA MIP — Why This Calculator Does Not Apply to FHA Loans
This tool models conventional PMI under the HPA, which by statute covers conventional loans only. FHA mortgage insurance runs on a separate rulebook (24 CFR Part 203) and carries no borrower cancellation right. For FHA loans endorsed on or after 3 June 2013 with a loan-to-value above 90% at origination, the annual MIP runs for the full loan term — it never drops off, no matter how much equity you build. At 90% LTV or below at origination, MIP runs 11 years. The practical exit is a refinance into a conventional loan once you hold 20% equity, at which point PMI rules (and this calculator) start applying. Run the numbers before refinancing: the MIP saved must beat the closing costs plus any rate increase.
How Long Until PMI Drops Off, by Down Payment
Most borrowers want one number before they open a calculator: roughly how many years am I stuck with this? The table below runs a 30-year fixed loan at 6.5% with no extra principal, so it isolates the effect of the down payment alone. Read it as a baseline — a higher rate amortizes more slowly at the start and pushes both dates later, while extra principal pulls the 80% date in. The 78% column is the date your servicer must act on without being asked, which the Consumer Financial Protection Bureau confirms is automatic on conventional loans.
| Down payment | 80% LTV (you request) | 78% LTV (automatic) |
|---|---|---|
| 3% | 11 yr 1 mo | 12 yr 0 mo |
| 5% | 10 yr 4 mo | 11 yr 3 mo |
| 10% | 7 yr 11 mo | 9 yr 1 mo |
| 15% | 4 yr 8 mo | 6 yr 3 mo |
Updated 2026-08-31. Sources: Homeowners Protection Act of 1998, 12 U.S.C. 4902 (termination of PMI); FHA insurance rules at 24 CFR Part 203.
Frequently Asked Questions
How do I use a PMI removal calculator to find my cancellation date?
Enter your original home value, original loan amount, interest rate, term, and any extra monthly principal. The calculator amortizes the loan and returns two dates: the month your balance hits 80% of original value (the earliest you can request cancellation in writing) and the month it hits 78% (automatic termination the servicer must apply without a request). Extra payments move the 80% request date earlier but do not move the 78% automatic date, which is fixed to the original amortization schedule.
What can I do if my servicer refuses to cancel PMI at 80%?
Confirm you meet all four Homeowners Protection Act conditions: written request, no 30-day late in the past 12 months and no 60-day late in the past 24, no second liens, and current value at or above original value. Under 12 U.S.C. 4902 the servicer must stop collecting premiums within 30 days of receiving your request and the supporting evidence. At the scheduled 78% point cancellation is automatic, and the same statute bars any PMI charge past the midpoint of the amortization period (year 15 of a 30-year loan) if you are current.
What is the difference between 80% and 78% LTV for PMI?
At 80% LTV you can request PMI cancellation in writing. At 78% LTV, PMI must automatically terminate without any request. The 78% figure is based on the original amortization schedule, not extra payments — but you can use extra payments to hit 80% earlier and request cancellation.
Can I remove PMI if my home has appreciated?
Yes. If the current market value supports 80% LTV, you can request cancellation after 2 years of ownership (5 for Freddie Mac loans). You must pay for a new appraisal ($400-600 typically), have a clean payment history, and no second liens on the property.
Does FHA MIP work the same way?
No. FHA mortgage insurance premium (MIP) rules are different. For FHA loans originated after June 2013 with less than 10% down, MIP lasts the life of the loan. With 10%+ down, MIP drops after 11 years. To escape FHA MIP, most borrowers refinance to a conventional loan once they reach 20% equity.
What is the midpoint cancellation rule?
The Homeowners Protection Act requires PMI cancellation at the midpoint of your loan term — year 15 on a 30-year loan — regardless of LTV, as long as you are current. This protects borrowers whose amortization is slow (low rates with long terms).
Can I pay off extra to drop PMI faster?
Yes. Extra principal payments reduce your loan balance and drive LTV down faster. Every dollar extra is especially valuable because it reduces both the loan interest and the PMI base. A $100/month extra payment on a $400K loan often removes PMI 2-3 years early.
What PMI rate should I expect?
PMI rates range from 0.3% to 1.5% of the loan balance per year, based on credit score, LTV, and loan type. A borrower with a 760 credit score at 90% LTV might pay 0.4% annually, while a 680 score at 95% LTV could pay 1.2%+.
How long until PMI drops off with 5% down?
On a 30-year fixed loan at 6.5% with no extra principal, a 5% down payment reaches 80% LTV at about 10 years 4 months and the automatic 78% termination point at about 11 years 3 months. A 10% down payment reaches those points at roughly 7 years 11 months and 9 years 1 month. Extra principal pulls the 80% request date forward; the 78% date stays on the original amortization schedule.
Does refinancing remove PMI?
Only if the new loan is below 80% LTV on the current appraised value. Refinancing at 82% LTV simply buys new PMI at a new rate. Compare the total PMI still owed on your existing loan (this calculator shows it) against the closing costs plus any rate increase on the refinance. If you are only a year or two from the 80% request date, a written cancellation request costs an appraisal fee instead of a full refinance.