Cash-In Refi PMI Removal Calculator
Calculate cash needed at refinance to drop below 80% LTV and eliminate PMI. Compare PMI savings vs cash committed.
| Current LTV | — |
| Target Balance (80% LTV) | — |
| Cash to Apply | — |
| Annual PMI Saving | — |
| Rate Impact (Refi delta × balance) | — |
| Break-Even Years | — |
Cash-in refinance applies extra cash at refinance to drop the loan-to-value (LTV) ratio below 80%, eliminating PMI. Only useful when current rate ≥ refi rate or PMI savings outweigh rate increase. Source: CFPB, Homeowners Protection Act.
When Cash-In Refi Works
Mathematically works when annual PMI saved exceeds rate-difference cost. $120/mo PMI = $1,440/yr saved. If refinance rate is 1% above current, $250k balance × 1% = $2,500/yr extra cost. Net loss $1,060/yr — cash-in does NOT pay. Cash-in only wins when refi rate equals or beats current rate AND PMI is being eliminated.
Alternative: Request PMI Removal
If LTV is already 80% via principal payments and appreciation, simply request PMI cancellation in writing from servicer. Conventional loans auto-cancel at 78% LTV per Homeowners Protection Act. FHA loans require refinance to remove MIP (FHA MIP does not cancel for sub-10% down loans).
Run Both Scenarios
Scenario A: keep current loan, request PMI removal at 80% LTV. Scenario B: refinance with cash-in to skip PMI immediately. Scenario A is free; Scenario B locks up cash that could earn 4-5% in HYSA. Cash-in only beats HYSA returns when PMI is high ($200+/mo) and home appreciation is slow.
Last updated May 2026. Sources: CFPB Mortgage Rules, Homeowners Protection Act.