Can I cancel PMI early with appraisal?

Yes \u2014 at 80% LTV based on current value, if lender approves the appraisal.

Does extra principal accelerate PMI removal?

Yes \u2014 paying extra principal hits 78% LTV faster.

Is PMI tax-deductible?

Was deductible 2007-2021 (Sec 163(h)). Currently not deductible post-2021 unless Congress extends.

What if home value dropped?

Auto-cancel still applies at 78% LTV by original amortization, regardless of value.

FHA MIP \u2014 same rules?

No \u2014 FHA MIP has its own rules. Often requires refinance to cancel.

PMI Removal Date

PMI auto-terminates at 78% LTV per HPA. Borrower can request removal at 80% LTV. Calculate the date based on amortization schedule.

Original Home Price ($)

Original Loan Amount ($)

Interest Rate (%)

Term (years)

Monthly PMI ($)

Auto-Cancel (78% LTV)

—

Request Cancel (80%)

—

Lifetime PMI Savings

—

Monthly principal+interest	—
78% LTV threshold	—
80% LTV threshold	—
Months to 78% LTV	—
Months to 80% LTV	—
PMI saved by early request	—
Total lifetime PMI savings	—

Private Mortgage Insurance (PMI) is required when down payment is less than 20%. The Homeowners Protection Act (HPA) of 1998 requires PMI to automatically terminate at 78% LTV based on original amortization schedule, and allows borrower-initiated cancellation at 80% LTV.

Auto-Termination at 78% LTV

Per HPA Section 3, PMI must automatically terminate when scheduled LTV reaches 78% based on original amortization. Lender cannot continue charging PMI after this date — even if home value has dropped.

Borrower-Initiated at 80% LTV

You can request PMI cancellation at 80% LTV (per scheduled amortization OR current home value via appraisal). Lender must comply if: payments current, no second mortgage, no decline in value (lender may require appraisal at your cost ~$500).

Accelerate Removal Strategies

(1) Make extra principal payments. (2) Get appraisal showing 20%+ equity from market appreciation. (3) Lump-sum recast loan. (4) Refinance to new loan with 20%+ equity. Method 2 (appraisal) is cheapest if home value rose substantially.

FHA MIP Is Different

FHA Mortgage Insurance Premium (MIP) does NOT auto-cancel on most loans originated after 2013. MIP lasts the life of loan unless you refinance into conventional. This calculator is for conventional PMI only.

Last updated May 2026. Sources: HPA Public Law 105-216, CFPB PMI Guide.