PMI Removal Calculator

When Does PMI Drop Off — and How Much Will You Save?

Private mortgage insurance (PMI) is required when you take out a conventional loan with less than 20% down. It protects the lender, not you — and costs 0.5%–1.5% of your loan balance annually, roughly $80–$250/month on a $300,000 loan. The Homeowners Protection Act gives you the legal right to request cancellation at 80% LTV and requires automatic termination at 78% LTV.

The challenge is knowing when you'll hit those thresholds. Amortization in the early years of a loan is slow — most of your payment goes to interest, so balance falls gradually. PMI cancellation based on payments alone may be years away, but home value appreciation can dramatically accelerate the timeline.

Who this is for: Conventional mortgage borrowers currently paying PMI who want to know when it ends and how to speed up removal. Key assumptions: LTV threshold is measured against the original purchase price or a new appraisal value if entered. Monthly payment uses standard amortization. PMI rate defaults to 0.8% annually — enter your actual PMI cost from your mortgage statement for a precise payoff date.

Home Value at Purchase

$

Current Loan Balance

$

Interest Rate

%

Remaining Term

yrs

Monthly PMI Cost

$

Current Appraised Value (optional — if home has appreciated)

$

Months Until PMI Removal

—

Current LTV —

0%78%80%100%

Monthly P&I payment —

Request removal at 80% LTV —

Auto-cancel at 78% LTV —

Total PMI remaining —

Monthly savings after removal —

ℹ RefinanceUSA is not a lender. Results are estimates for comparison — actual loan terms vary by lender and credit profile. How we calculate

How to Use This Calculator

Enter your original loan balance, interest rate, and loan term — use your original loan documents or the balance and term remaining from your current statement.
Enter your current home value — use a recent appraisal, or an estimate from Zillow or Redfin. Rising home values can dramatically accelerate your PMI removal date.
Enter your annual PMI cost — find this on your mortgage statement or in your escrow analysis. If unknown, the calculator defaults to 0.8% of the loan balance annually.
Review the PMI removal timeline — the calculator shows your current LTV, the month PMI drops off based on your payment schedule alone, how appreciation accelerates that date, and the total PMI you'll pay between now and removal.
Consider your options — if your LTV is close to 80%, a lump-sum principal payment or a new appraisal may trigger early removal. The calculator shows the payoff amount needed to cross the threshold today.

What Is PMI and When Does It Go Away?

Private mortgage insurance (PMI) is a monthly fee your lender charges when you buy a home with less than 20% down. It protects the lender — not you — against default losses. For a typical $350,000 loan with 5% down, PMI commonly runs $100–$200 per month.

PMI is not permanent. The Homeowners Protection Act (HPA) of 1998 gives you two removal paths:

Request Removal at 80% LTV · Automatic Cancellation at 78% LTV

80% LTV (borrower-requested): Once your loan balance drops to 80% of the original purchase price, you can submit a written request to your servicer. The lender may require an appraisal and a clean payment history (no 30-day lates in the past year, no 60-day lates in the past 2 years).
78% LTV (automatic termination): When the scheduled amortization reaches 78% of the original purchase price, the lender must cancel PMI automatically — no action needed from you. Your payments must be current.
Loan midpoint: PMI must also be cancelled no later than the midpoint of your loan term, regardless of LTV, if payments are current.

How LTV Is Calculated

LTV (Loan-to-Value) is simply your loan balance divided by the home value, expressed as a percentage:

LTV = Loan Balance ÷ Home Value × 100

Example: You bought a home for $350,000 with 5% down ($17,500). Your starting loan was $332,500, giving an initial LTV of 95%. After 3 years of normal payments, your balance is ~$315,000 — LTV is now 90%. You need to reach $280,000 (80% of $350,000) before you can request PMI removal.

Purchase Price vs. Current Appraised Value

For standard HPA removal, the denominator is always the original purchase price — not the current market value. However, if your home has appreciated significantly, many servicers will accept a new appraisal and calculate LTV against the higher current value. This path is explained below.

Using Home Appreciation to Remove PMI Early

If home values in your area have risen since you bought, your current LTV may already be below 80% even though your loan balance hasn't paid down that far. Most lenders will allow an early PMI removal request based on a new appraisal under these conditions:

You have made at least 2 years of on-time payments (some lenders require 5 years if LTV hasn't dropped below 75% based on the original schedule)
You order a lender-approved appraisal at your expense (typically $400–$700)
The appraisal confirms the current LTV is at or below 80%
Your payment history is clean (no recent lates)

If your current appraised value is significantly higher than your purchase price, enter it in the optional field above — the calculator will show your LTV based on the appreciated value and flag if PMI removal may be available now.

Refinancing as an Alternative

If your home has appreciated, refinancing into a new loan sized at 80% or less of the current value eliminates PMI entirely on the new loan — no HPA process required. Use the Break-Even Calculator to check if the closing costs make sense before pursuing this route.

5 Things That Affect When PMI Goes Away

Down payment size: A 10% down payment starts at 90% LTV — PMI removal comes faster than a 5% down loan at 95% LTV.
Interest rate: A lower rate means more of each payment goes to principal, which accelerates LTV reduction.
Extra principal payments: Any extra payments made directly to principal lower your balance faster and move the 80% LTV date forward.
Home appreciation: Even without extra payments, rising home values can drop your LTV below 80% on the current-value basis, enabling an appraisal-based early removal request.
Loan term: A 15-year loan pays down principal twice as fast as a 30-year, so PMI removal typically arrives years earlier on a shorter term.

PMI Removal Scenarios — How Much You Save and When

PMI cancellation timelines vary dramatically based on loan size, rate, down payment, and whether you make extra payments or benefit from home appreciation. These three scenarios show the real numbers.

Scenario 1 — Standard amortization: When does PMI automatically end?

$350K home, 10% down, 6.5% rate

Home value (purchase)	$350,000
Loan amount	$315,000 (90% LTV)
Interest rate	6.50% / 30-year fixed
Monthly P&I	$1,992/mo
PMI monthly cost (~0.8%/yr)	$210/mo
80% LTV threshold	$280,000 (can request removal)
Month PMI can be requested	Month 95 (year 7 month 11)
78% LTV threshold	$273,000 (automatic termination)
Month PMI auto-terminates	Month 109 (year 9 month 1)
Total PMI paid (auto-cancel)	~$22,890 over 109 months

Without any extra action, HOPA requires the lender to automatically terminate PMI at month 109 — after 9 years and over $22,000 in premiums. If you request removal at month 95 (when balance hits 80% of original value), you save 14 months of PMI = $2,940. Keep a calendar reminder at year 7 to contact your servicer.

Scenario 2 — Extra $200/month: How much sooner does PMI end?

Same loan + $200/mo extra principal payment

Standard PMI removal month	Month 95
Extra payment per month	$200 applied to principal
PMI removal with extra payments	~Month 65 (year 5 month 5)
Months of PMI eliminated	~30 months
PMI premiums saved	~$6,300
Extra principal paid to reach 80% LTV	~$13,000 over 65 months
Net benefit	$6,300 PMI saved − $13,000 extra paid = −$6,700

The math may surprise you: paying $200/mo extra speeds up PMI removal by 30 months, but the total extra principal payments exceed the PMI savings. The extra payments are not a loss — every extra dollar reduces principal and builds equity — but the motivation to eliminate PMI alone may not justify $200/mo extra. The real benefit is the combination of equity acceleration + PMI elimination + reduced total interest paid over the loan life.

Scenario 3 — Appreciation-based removal: The fastest path

Home appreciates 18% — PMI can go away in year 2

Original purchase price	$350,000 (2022)
Down payment	10% ($35,000)
Starting LTV	90%
Balance after 2 years	~$306,000
Home value after 18% appreciation	$413,000
Current LTV (on new value)	74.1%
PMI removal eligible?	Yes — order a new appraisal
PMI removed at month	~Month 24 instead of Month 95
PMI avoided	71 months × $210/mo = $14,910 saved
Appraisal cost	~$400–$600

This is the highest-return move available to any PMI payer in an appreciating market. A $500 appraisal that removes PMI 6 years early delivers a 2,900% return on that investment. Check your home's value annually using Zillow's Zestimate or recent neighborhood comps — if your LTV on current value is approaching 80%, it's worth ordering a formal appraisal.

PMI Monthly Cost Quick Reference

Loan Balance	PMI at 0.5%/yr	PMI at 0.8%/yr	PMI at 1.2%/yr
$200,000	$83/mo	$133/mo	$200/mo
$300,000	$125/mo	$200/mo	$300/mo
$400,000	$167/mo	$267/mo	$400/mo
$500,000	$208/mo	$333/mo	$500/mo
$700,000	$292/mo	$467/mo	$700/mo

PMI rate varies by credit score, LTV, and lender. Use 0.5%/yr for 760+ FICO at 85% LTV; 1.2%/yr for 680 FICO at 90% LTV as a rough guide.

Frequently Asked Questions

When can I request PMI removal?

Once your loan balance reaches 80% of the original purchase price. Submit a written request to your servicer. They may require a current appraisal, no recent late payments, and confirmation that there are no subordinate liens on the property.

When is PMI automatically cancelled?

At 78% LTV based on the original amortization schedule — even if you've made extra payments. The lender must cancel PMI automatically without any action from you, provided payments are current at that time.

Can home appreciation help me remove PMI early?

Yes. If your home has appreciated and your LTV based on the new appraised value is 80% or below, most servicers will accept a new appraisal for early PMI removal. You generally need at least 2 years of payment history. The appraisal cost (typically $400–$700) usually pays for itself within a few months of PMI savings.

Is refinancing a way to remove PMI?

Yes. If you refinance when your LTV is at or below 80% of the current appraised value, the new loan will not require PMI. This is most effective when your home has appreciated significantly. Use the Break-Even Calculator to see if refinancing closing costs are worth the PMI savings.

How long does a PMI removal appraisal take, and how much does it cost?

A licensed home appraisal for PMI removal typically costs $400–$700 and takes 1–3 weeks from order to completed report. Some servicers accept a broker price opinion (BPO) instead, which costs $75–$150 and takes about a week — but not all servicers accept BPOs for PMI removal. Call your servicer first to confirm which valuation type they require. Either way, the cost is almost always recovered within 1–2 months of eliminated PMI payments.

Does PMI apply to investment properties and second homes?

Yes. Conventional PMI applies to investment properties and second homes whenever LTV exceeds 80%, just as it does for primary residences. However, PMI premiums on non-owner-occupied properties are significantly higher — often 2x–3x the primary residence rate — because default risk is greater. The Homeowners Protection Act's automatic cancellation rule (78% LTV) applies equally, though servicers may require additional documentation for borrower-initiated removal on investment properties.

What if my servicer denies my PMI removal request?

Servicers can deny a PMI removal request if payments are not current, if there's a subordinate lien, or if an ordered appraisal shows LTV above the threshold. They must provide the reason in writing. If the appraisal came in low, review the comparable sales used and request a reconsideration of value with your servicer before ordering a second appraisal. If your LTV is borderline, waiting 6–12 months for additional amortization before reapplying may produce a different result.

How Much PMI Costs You: The Numbers by Loan Size

PMI premiums are set by the mortgage insurer (MGIC, Radian, Essent, and others) based on your LTV and credit score. Here is what conventional PMI typically costs across common scenarios — and how much you'll save the moment it's removed.

Loan Balance	LTV	Credit Score	Approx. PMI/Year	Monthly Cost
$250,000	90%	760+	~$375–$500	~$31–$42/mo
$300,000	90%	740+	~$510–$720	~$43–$60/mo
$300,000	85%	740+	~$360–$540	~$30–$45/mo
$400,000	90%	720+	~$840–$1,200	~$70–$100/mo
$400,000	85%	720+	~$600–$960	~$50–$80/mo
$500,000	85%	740+	~$750–$1,125	~$63–$94/mo

Borrowers with lower credit scores (<720) pay significantly more — sometimes 0.5%–1.2% per year or higher. The table above reflects "good credit" premiums. If you locked in at a higher PMI rate due to credit score at origination, your savings from elimination may be even larger.

PMI vs. FHA MIP: The Crucial Difference

Conventional PMI cancels automatically at 78% LTV and can be requested at 80% — but FHA MIP (for loans originated after June 2013 with less than 10% down) never cancels. If you're on an FHA loan and your LTV has reached 80% or below, the most impactful thing you can do is refinance to a conventional loan and eliminate MIP entirely. Use the FHA Refinance Calculator to model this switch.

The Servicer PMI Removal Process

Getting PMI removed requires action on your part — either a written request (for borrower-initiated cancellation at 80% LTV) or waiting for automatic cancellation at 78% LTV. Here is exactly how to navigate each path.

Path 1: Borrower-Initiated Cancellation at 80% LTV

Confirm your LTV: Calculate (current balance ÷ original purchase price). If ≤ 80%, proceed. If you believe appreciation has helped, you'll need a new appraisal — see Path 3.
Submit a written request: Federal law requires the request to be in writing. Send it to your servicer's address of record, certified mail. Include your loan number, property address, and a request for PMI cancellation under the Homeowners Protection Act.
Meet the servicer's conditions: Servicers can require (a) no 30-day late payments in the past 12 months, (b) no 60-day late payments in the past 24 months, and (c) confirmation of no second liens. Confirm your payment history before applying.
Timeline: Servicers must respond within 30 days of a written request. If they order an appraisal to verify value, add 2–4 weeks. PMI typically stops within 1–2 billing cycles of approval.

Path 2: Automatic Cancellation at 78% LTV

At 78% LTV based on the original amortization schedule — not current balance — your servicer must cancel PMI automatically. No action required. The key limitation: this uses the original schedule. If you've paid ahead, you still wait for the scheduled date. Submitting a borrower request at 80% is almost always faster.

Path 3: Appreciation-Based Cancellation (Below 80% via New Appraisal)

If your home has appreciated and your LTV based on the current appraised value is at or below 80%, most servicers will accept an appraisal for PMI removal — provided you have at least 2 years of payment history on the loan. Order an appraisal directly through your servicer (they typically require an approved appraiser on their panel). The appraisal fee ($400–$700) is almost always recovered within 2–3 months of PMI elimination.

One thing to check first: Before ordering an appraisal for appreciation-based removal, call your servicer and confirm their specific LTV and seasoning requirements. Some servicers require LTV at or below 75% (not 80%) for appreciation-based cancellation if the loan is less than 5 years old.

PMI Removal Calculator

When Does PMI Drop Off — and How Much Will You Save?