PMI Removal Eligibility Calculator

The PMI removal eligibility calculator is a free, browser-based tool that tells you when you can legally drop private mortgage insurance. Enter your original purchase price, current balance and current home value, and it checks all three federal removal paths at once — automatic termination, written request, and reappraisal. Last updated: 10 August 2026.

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.

The Fourth Path Almost No One Mentions: Final Termination at the Midpoint

Most guides list three removal paths and stop. The Homeowners Protection Act contains a fourth, and it is the safety net for borrowers whose LTV never quite gets there. Under the Act’s final termination provision, your servicer must cancel PMI on the first day of the month following the midpoint of the loan’s amortization schedule, regardless of your loan-to-value ratio, provided you are current on payments at that date. On a 30-year loan that midpoint is 15 years; on a 20-year loan it is 10. This matters most for borrowers who recast, who took an interest-only or negative-amortization period, or who bought at the top of a local market that then flattened — situations where the 78% threshold on original price can take far longer than the schedule implies. Two cautions: the midpoint is the midpoint of the amortization period, not of the years you have owned the home, so a loan modification can move it; and unlike the 80% request path, you do not have to ask — but servicers do miss it, so calendar the date and check your statement that month.

Is PMI Tax Deductible in 2026?

Yes, and this reversed recently. Mortgage insurance premiums lapsed as a deduction after 2021, but Section 70108 of the One Big Beautiful Bill Act (Pub. L. 119-21, signed 4 July 2025) made them permanently deductible as qualified residence interest from 1 January 2026. The deduction covers private mortgage insurance on conventional loans, FHA upfront and annual MIP, VA funding fees, and USDA guarantee fees, and it sits inside the same $750,000 acquisition-debt cap as your mortgage interest. It phases out as adjusted gross income rises above $100,000 ($50,000 if married filing separately) and disappears entirely at $109,000 ($54,500 MFS). Two practical consequences. First, you only benefit if you itemize, which most borrowers no longer do given the size of the standard deduction — so run the comparison before treating the deduction as real money. Second, the deduction reduces but never eliminates the case for cancelling: removing PMI saves you the full premium, while deducting it saves you only your marginal rate on that premium. Cancel as soon as you are eligible.

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.