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PMI Removal Calculator

Find when you can cancel private mortgage insurance and when it must terminate automatically under the Homeowners Protection Act, and what the wait costs.

How to use this calculator

  1. 1Enter the original purchase price and loan amount — the thresholds are measured against the original value, not today's.
  2. 2Enter your rate, term, monthly PMI premium and how many payments you have already made.
  3. 3Add any extra principal you pay each month, which brings the 80% date forward.
  4. 4Diarise the date you reach 80% and send a written cancellation request — the lender will not prompt you.

How the calculation works

Request right at balance ≤ 80% of original value. Automatic termination at balance ≤ 78% of original value, or the term midpoint, whichever is first
original value
The lesser of the purchase price and the original appraised value — not the current market value
term midpoint
Halfway through the amortisation schedule, a backstop for slowly amortising loans

The Homeowners Protection Act of 1998 sets both thresholds against the original value, which is why appreciation does not automatically help. Using current value requires a separate appraisal-based request that the servicer is not obliged to grant.

The 80% right requires a written request, a current loan, a good payment history and no junior liens. The 78% termination is automatic and requires nothing from the borrower.

This covers borrower-paid PMI on conventional loans only. FHA mortgage insurance follows entirely different rules and, for most loans since 2013, lasts the life of the loan.

Worked example

$380,000 loan on a $400,000 purchase

  1. 1.The 80% threshold is $320,000 and the 78% threshold is $312,000, both against the original $400,000.
  2. 2.The loan started at 95% LTV, so it takes years of amortisation to reach those balances.
  3. 3.At $190 a month, every extra year of PMI costs $2,280 — which is why knowing the date matters.
  4. 4.Requesting at 80% rather than waiting for the automatic 78% point saves roughly a year of premiums.

Result: A written request at 80% saves about a year of PMI

The two thresholds, and why only one is automatic

Private mortgage insurance protects the lender, not you, and is normally required on a conventional loan with less than 20% down. The Homeowners Protection Act of 1998 gives borrowers two distinct rights to be rid of it, and the difference between them is worth real money.

At 80% loan-to-value against the original value, you may request cancellation in writing. The lender must comply if you are current, have a good payment history, and there are no junior liens — but only if you ask. Nothing happens automatically at this point, and servicers do not send reminders.

At 78%, termination is automatic. The lender must remove PMI without any request, provided the loan is current. There is also a backstop: if a loan amortises so slowly that it has not reached 78% by the midpoint of its term, PMI must terminate then regardless.

The gap between the two thresholds is typically a year or more of premiums. On a $190 monthly premium that is well over $2,000 left on the table by not writing a letter.

Using appreciation to cancel sooner

Both statutory thresholds use the original value, so a home that has risen sharply in value does not automatically get you out of PMI faster. There is a separate route, though it is discretionary rather than statutory.

Most servicers will consider cancellation based on a current appraisal, typically requiring 75–80% LTV against the new value and often a minimum seasoning period of two to five years. You pay for the appraisal, usually a few hundred dollars, and the servicer sets the rules. In a market where values have risen substantially this can remove PMI years earlier than amortisation alone would, and the appraisal cost is recovered within a couple of months of premiums.

One important exclusion: none of this applies to FHA loans. FHA mortgage insurance follows its own rules entirely, and for most loans originated since June 2013 with less than 10% down it lasts the life of the loan. The only way out is to refinance into a conventional mortgage.

What this assumes, and where it stops

Assumptions

  • The loan is a conventional mortgage with borrower-paid PMI, originated after the Homeowners Protection Act took effect.
  • Thresholds are measured against the original value — the lesser of purchase price and original appraised value.
  • The loan is current with a good payment history, which both cancellation routes require.
  • The PMI premium stays constant, though some policies adjust it over time.

Limitations

  • FHA, VA and USDA loans are not covered; FHA mortgage insurance in particular follows entirely different rules and is often permanent.
  • Lender-paid PMI, where the cost is built into a higher rate, cannot be cancelled at all and is not modelled.
  • Appraisal-based cancellation using current value is discretionary and its timing cannot be predicted here.
  • High-risk loans can be subject to later termination dates than the standard thresholds.

Common questions

When can I get PMI removed?

You can request cancellation in writing once the balance reaches 80% of the original value, and the lender must comply if you are current, have a good payment history, and there are no junior liens. At 78% the lender must cancel automatically without any request. The gap between the two is often a year or more of premiums, which is why sending the request at 80% is worth diarising.

My home has gone up in value — can I cancel PMI early?

Possibly, but not under the automatic rules, which use the original value. Most servicers will consider cancellation based on a new appraisal showing 75–80% LTV against current value, usually after a minimum seasoning period of two to five years. You pay for the appraisal and the servicer sets the terms, but in a strong market this can remove PMI years earlier and the cost is recovered within a couple of months.

Does this apply to my FHA loan?

No. FHA mortgage insurance premiums follow completely separate rules from conventional PMI, and for most loans originated since June 2013 with less than 10% down the annual premium lasts the entire life of the loan. There is no cancellation threshold to reach. The only way to remove it is to refinance into a conventional mortgage once you have enough equity.

Sources

Formula and content last reviewed on .

Results are estimates for information only, not professional advice.

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