Use this PMI removal calculator to estimate when you may be able to request private mortgage insurance cancellation and when PMI may automatically terminate.
The calculator can also estimate your monthly PMI cost based on the mortgage amount and PMI rate you enter.
Those are separate calculations. Your PMI cost depends on your loan and mortgage insurance pricing, while the standard federal cancellation timeline is primarily based on your mortgage balance compared with the home's original value.
PMI Removal Calculator Basics
| Calculator Result or Input |
What It Means |
| Home Value |
The property value used to calculate your starting loan-to-value ratio |
| Loan Amount |
The amount financed with the first mortgage |
| Loan-to-Value Ratio |
The first mortgage balance divided by the applicable property value |
| PMI Rate |
The annual mortgage insurance percentage used to estimate your PMI cost |
| Estimated Monthly PMI |
The estimated monthly mortgage insurance charge based on the PMI rate entered |
| 80% Request Date |
The estimated point when you may be able to request cancellation under the standard original-value rules if the other requirements are met |
| 78% Automatic Termination Date |
The estimated scheduled point when PMI generally must terminate automatically if you're current and the applicable federal requirements are met |
PMI applies to conventional mortgages. FHA mortgage insurance follows different rules and should not be evaluated using the conventional 80% and 78% thresholds.
How to Read Your PMI Removal Calculator Results
For PMI removal, start with the 80% and 78% milestones.
The 80% point represents when you may be able to request PMI cancellation. The 78% point represents when PMI generally terminates automatically if the mortgage is current.
Those dates are not interchangeable.
The Consumer Financial Protection Bureau explains that borrower-requested cancellation and automatic termination have different requirements under the Homeowners Protection Act.
Example PMI Removal Result
Suppose your home's original value is $400,000 and your current first-mortgage balance is $330,000.
An 80% LTV based on the original value equals:
$400,000 × 80% = $320,000
You would need the applicable mortgage balance to reach $320,000 before the standard 80% cancellation threshold is met.
The automatic 78% threshold would correspond to a scheduled balance of:
$400,000 × 78% = $312,000
The actual cancellation or termination date depends on the amortization schedule and whether the other requirements are satisfied.
When Can You Request PMI Cancellation?
For many conventional mortgages covered by the Homeowners Protection Act, you can request PMI cancellation when the principal balance is scheduled to reach 80% of the home's original value.
You may also reach the 80% threshold earlier by paying additional principal. If your actual principal balance falls to 80% of the original value before the scheduled date, you can generally request cancellation at that point.
Reaching 80% does not mean PMI automatically disappears.
Federal rules allow the servicer to require that:
- You make the cancellation request in writing.
- You have a good payment history.
- You are current on the mortgage.
- You certify that the property does not have a junior lien, such as a second mortgage.
- You provide evidence, when required, that the property's value has not fallen below its original value.
For a purchase mortgage, original value generally means the lower of the purchase price or appraised value when you bought the home. For a refinance, it generally refers to the appraised value used for the refinance.
When Does PMI Go Away Automatically?
PMI generally must terminate automatically when the mortgage balance is scheduled to reach 78% of the home's original value, provided you're current on the mortgage.
The word “scheduled” is important.
Automatic termination is based on the mortgage's amortization schedule, not simply the actual balance you happen to have on that date.
Extra principal payments can move your potential 80% borrower-requested cancellation date forward. They do not move the statutory scheduled 78% automatic-termination date forward.
If you're not current when the scheduled 78% date arrives, PMI generally terminates after you bring the mortgage current.
The broader guide to how long PMI lasts explains the cancellation and termination timelines in more detail.
The Midpoint Termination Rule
Federal law provides another backstop based on the midpoint of the original amortization period.
For a standard 30-year mortgage, that midpoint occurs after 15 years.
This rule matters more for mortgages whose scheduled balances do not reach 78% before the midpoint, such as certain loans with interest-only periods, principal forbearance or balloon structures.
You generally must be current for PMI to terminate under the midpoint rule.
How Is PMI Calculated?
A basic monthly PMI estimate uses the mortgage balance and annual PMI rate:
Estimated monthly PMI = loan amount × annual PMI rate ÷ 12
This estimates the cost of PMI. It does not determine when you can remove it.
PMI Calculation Example
Suppose you buy a $400,000 home with 10% down.
Your starting mortgage amount would be $360,000. If you enter a hypothetical 0.50% annual PMI rate:
- Annual PMI estimate: $360,000 × 0.005 = $1,800
- Monthly PMI estimate: $1,800 ÷ 12 = $150
The $150 is an illustration based on the assumed rate. It is not a standard PMI charge for every $360,000 mortgage.
Why Current PMI Rates Vary
There is no single current PMI rate that applies to every conventional borrower.
Your mortgage insurance pricing can depend on factors including your credit profile, loan-to-value ratio, loan characteristics, required insurance coverage and mortgage insurer.
If you already have a mortgage quote, use the PMI amount or rate associated with that loan rather than a generic online estimate.
Can a New Appraisal Help You Remove PMI Earlier?
Potentially, but current-value cancellation rules are different from the standard federal 80% cancellation process.
Under the standard Homeowners Protection Act process, a higher current appraisal does not replace the home's original value for the 80% request or 78% automatic-termination calculation.
However, Fannie Mae, Freddie Mac and other mortgage investors can have separate rules that allow borrower-requested PMI cancellation based on the property's current value.
Current-Value PMI Removal on Fannie Mae Loans
Fannie Mae's servicing rules allow current-value mortgage insurance termination for eligible mortgages.
For a one-unit principal residence or second home, Fannie Mae generally requires:
- 75% LTV or less when the mortgage is between two and five years old
- 80% LTV or less when the mortgage is more than five years old
- An acceptable payment history
- A property valuation meeting Fannie Mae requirements
The minimum two-year seasoning requirement can be waived when qualifying borrower-made improvements increased the property's value. In that case, the applicable LTV generally must be 80% or less.
Current-Value PMI Removal on Freddie Mac Loans
Freddie Mac also permits borrower-requested mortgage insurance cancellation based on current value under its servicing rules.
For eligible loans, Freddie Mac generally uses:
- 75% LTV or less when the mortgage is seasoned between two and five years
- 80% LTV or less when the mortgage is more than five years old
- 80% LTV or less when qualifying substantial improvements allow the normal minimum seasoning requirement to be waived
The servicer determines whether the loan meets the applicable investor requirements and what valuation is required.
Can Home Appreciation Get Rid of PMI?
Home appreciation can create enough equity to meet an investor's current-value cancellation requirements before the mortgage reaches the standard 80% original-value threshold.
Appreciation does not automatically cancel PMI.
Contact your mortgage servicer before ordering your own appraisal. The investor or servicer may require a specific appraisal, broker price opinion or other valuation process.
The home equity calculator can help estimate your current LTV for planning purposes.
How LTV Affects PMI Removal
Loan-to-value ratio, or LTV, compares your first mortgage balance with the property value being used for the calculation.
For example:
$240,000 mortgage ÷ $300,000 property value = 80% LTV
The correct property value depends on the cancellation path.
Standard federal cancellation and automatic-termination rules generally use the home's original value. An eligible current-value cancellation request instead uses a qualifying current property valuation.
LTV vs. CLTV
Combined loan-to-value ratio, or CLTV, includes other loans secured by the property, such as a home equity loan or HELOC.
That differs from the first-mortgage LTV used for standard PMI thresholds. However, a junior lien can still affect whether you qualify for borrower-requested PMI cancellation.
Ways to Reach PMI Removal Sooner
Pay Additional Principal
Extra principal payments can reduce your mortgage balance to 80% of the home's original value sooner.
If you're using the calculator as a PMI payoff calculator, this is the main way additional payments can move the borrower-requested cancellation point forward.
Extra payments do not move the scheduled 78% automatic-termination date under the Homeowners Protection Act.
Use a Current-Value Cancellation Option
Home appreciation or substantial improvements may allow you to satisfy your mortgage investor's current-value PMI removal requirements before reaching 80% of original value.
The servicer must confirm that your mortgage qualifies.
Refinance the Mortgage
A refinance replaces your existing mortgage with a new loan. If the new conventional mortgage does not require PMI, refinancing can eliminate the old PMI payment.
Compare that potential savings with the new mortgage rate, closing costs and loan term. Refinancing to remove PMI does not automatically save money if replacing the loan raises your other borrowing costs.
PMI vs. FHA Mortgage Insurance
PMI applies to conventional mortgages. FHA loans use mortgage insurance premiums, or MIP, under a different set of rules.
| Feature |
Conventional PMI |
FHA MIP |
| Mortgage Type |
Conventional |
FHA |
| 80% Request Rule |
Applies to many HPA-covered mortgages when requirements are met |
Does not use the conventional PMI 80% cancellation rule |
| 78% Automatic Termination Rule |
Applies to many HPA-covered mortgages when requirements are met |
Does not use the conventional PMI 78% termination rule |
| Removal Timing |
Depends on federal, investor and servicer requirements |
Depends on FHA rules, including case-number date, original LTV and loan term |
The difference between PMI and MIP is especially important when estimating when mortgage insurance can end.
If you have an FHA mortgage, use the rules for removing FHA mortgage insurance rather than the conventional PMI removal thresholds.
What a PMI Removal Calculator Cannot Tell You
A PMI removal calculator can estimate your LTV, monthly PMI and an amortization-based cancellation timeline.
It cannot determine whether your servicer will approve a particular cancellation request.
Your actual removal options can depend on:
- The investor that owns the mortgage
- Your payment history
- Junior liens on the property
- The valuation method required by your servicer
- Whether you're using original or current property value
- The type of mortgage insurance attached to the loan
The calculator also cannot determine your actual mortgage insurance premium unless you enter the pricing that applies to your mortgage.
For a complete conventional housing-payment estimate that includes taxes, insurance and PMI, use the conventional loan calculator.
Bottom Line
A PMI removal calculator can estimate when you may reach the major conventional PMI cancellation thresholds.
For many covered mortgages, you can request PMI cancellation around 80% of the home's original value if you meet the other requirements. PMI generally terminates automatically when the scheduled balance reaches 78% and you're current.
Current-value cancellation rules from Fannie Mae, Freddie Mac or another investor may provide another path if your home has appreciated or you've made substantial improvements.
Frequently Asked Questions
When Can I Remove PMI?
For many conventional mortgages covered by the Homeowners Protection Act, you can request PMI cancellation when your mortgage is scheduled to reach 80% of the home's original value. You must also meet the applicable payment-history and other requirements.
When Does PMI Fall Off?
PMI generally terminates automatically when the scheduled mortgage balance reaches 78% of the home's original value and you're current on the loan. The midpoint rule provides another termination point for eligible mortgages whose scheduled balance does not reach 78% earlier.
Does PMI Automatically Go Away at 78% LTV?
Generally, yes, for covered mortgages when the scheduled principal balance reaches 78% of original value and you're current. Automatic termination is tied to the scheduled amortization date rather than simply reaching 78% early through extra principal payments.
Can I Pay Extra Principal to Remove PMI Faster?
Yes. Extra principal payments can bring your actual balance to 80% of the home's original value sooner, which may allow you to request cancellation earlier if you meet the other requirements.
Can an Appraisal Remove PMI?
Not automatically. A valuation can be required as part of the standard cancellation process, and some mortgage investors permit cancellation based on current property value when their LTV, seasoning, payment-history and valuation rules are met.
Can Home Appreciation Help Me Remove PMI?
Yes, when your mortgage investor permits current-value cancellation. Appreciation alone does not change the standard federal 80% request or 78% automatic-termination calculations based on original value.
How Is PMI Calculated?
A simple monthly estimate multiplies the loan amount by the annual PMI rate and divides the result by 12. Your actual PMI pricing depends on the mortgage and mortgage insurer.
What Are Current PMI Rates?
There is no single current PMI rate. Pricing varies by credit profile, loan-to-value ratio, loan characteristics, insurance coverage and mortgage insurer. Use the PMI pricing associated with your actual mortgage quote when available.
Can I Use a PMI Removal Calculator for an FHA Loan?
Not for FHA mortgage insurance removal. FHA uses MIP rather than conventional PMI, and the 80% request and 78% automatic-termination rules do not apply to FHA MIP.
Is PMI the Same as FHA Mortgage Insurance?
No. PMI applies to conventional mortgages. FHA mortgages use FHA mortgage insurance premiums and have separate duration and removal rules.
Should I Refinance Just to Remove PMI?
Not necessarily. Refinancing can eliminate PMI if the replacement mortgage does not require it, but it also replaces your existing rate and loan terms and typically involves closing costs. Compare the full old and new mortgage costs rather than PMI alone.
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