PMI Removal Eligibility Calculator
Federal Homeowners Protection Act (HPA) requires lenders to automatically cancel PMI when LTV reaches 78%, and grants borrowers the right to request cancellation at 80% LTV.
| LTV based on original purchase price | — |
| LTV based on current appraised value | — |
| Removal Paths | |
| Automatic termination (78% LTV original price) | — |
| Borrower-requested cancellation (80% LTV original price) | — |
| Reappraisal cancellation (75% LTV current value if <5y, 80% if >5y) | — |
| Annual PMI cost | — |
| Lifetime PMI cost if not removed (assume 5 more years) | — |
Private mortgage insurance (PMI) protects the lender against borrower default and is required on most conventional loans with down payment under 20%. Once your loan-to-value (LTV) ratio reaches certain thresholds, federal law gives you the right to cancel PMI — saving $100-400/month. This calculator checks all three removal paths: automatic termination, borrower-requested cancellation, and reappraisal-based cancellation.
Three Paths to Remove PMI
Path 1: Automatic termination at 78% LTV (original price). Federal Homeowners Protection Act requires servicers to automatically cancel PMI when your scheduled balance reaches 78% of original purchase price (not appraised value). No request needed.
Path 2: Borrower-requested cancellation at 80% LTV (original price). Submit a written request to your servicer when your balance reaches 80% of original purchase price. Servicer must comply if you meet good-payment-history requirements.
Path 3: Reappraisal-based cancellation. If home values have risen, order a new appraisal showing your LTV is below 75% (for loans less than 5 years old) or 80% (for loans 5+ years old). Submit appraisal to servicer.
HPA Eligibility Requirements
To use HPA cancellation rights, you must meet ALL of these: (1) loan must be conventional (FHA and USDA loans have different rules — see notes below), (2) you must be current on your mortgage, (3) good payment history defined as no 30+ day late payments in the prior 12 months and no 60+ day late payments in the prior 24 months, (4) no junior liens (HELOC, second mortgage). For high-risk loans, the LTV threshold is 77% (auto) and 80% (request) instead.
FHA, VA, and USDA Are Different
FHA loans: Mortgage insurance premium (MIP) cannot be removed for loans originated after June 3, 2013 if down payment was less than 10% — MIP lasts the LIFE of the loan. To eliminate MIP on these loans, you must refinance into a conventional loan with LTV under 80%. VA loans: No monthly mortgage insurance, but funding fee is paid at closing. USDA loans: Annual fee (similar to MIP) lasts the life of the loan and cannot be removed without refinancing.
Last updated May 2026. Sources: CFPB Cancel PMI.