PMI Cancellation Calculator
Private Mortgage Insurance (PMI) automatically terminates at 78% LTV per the Homeowners Protection Act of 1998. Owners can request manual cancellation at 80% LTV. Faster cancellation via principal prepayment or appraisal-based reassessment saves $80-$300/month.
How PMI Cancellation Works
Homeowners Protection Act 1998 mandates auto-termination at 78% LTV based on original amortization. Borrower can REQUEST cancellation at 80% LTV based on either original schedule or current appraised value. Lender may require new appraisal at borrower expense ($400-600). For loans with seasoned payment history (2+ years), appraisal-based cancellation is the fastest path.
FHA MIP Vs Conventional PMI
Conventional PMI cancels automatically at 78% LTV. FHA Mortgage Insurance Premium (MIP) on loans originated after June 2013 with under 10% down lasts the LIFE of the loan — only cancellable by refinancing to conventional. The 2026 FHA MIP rate is 0.55-0.85% annual depending on LTV/term.
Three Strategies To Drop PMI Faster
One: extra principal payments. Even $200/month extra typically drops PMI 18-24 months sooner — saves $2,000-$6,000 net. Two: appraisal-based cancellation. Pay for new appraisal showing appreciation; LTV calculation uses appraised value. Three: refinance to conventional if FHA. Cost-benefit when current rates equal or below original.
Source: Homeowners Protection Act 1998 (12 USC §4901-4908), CFPB PMI Cancellation Guidelines 2025. Last updated: May 2026.