PMI Removal Calculator
Find out exactly when you can cancel PMI — and how much you save by requesting removal at 80% LTV instead of waiting for automatic cancellation at 78%.
PMI Cost Summary
Loan Details
How PMI Removal Works
Private mortgage insurance (PMI) protects the lender — not you — if you default on the loan. It's required when you put down less than 20% on a conventional mortgage. The good news: federal law (the Homeowners Protection Act of 1998) guarantees you can get rid of it once you've built enough equity.
There are two thresholds you need to know. At 80% LTV (you own 20% of the home's value), you can request PMI removal. Your lender may require a formal appraisal to confirm the home's value hasn't declined. At 78% LTV (you own 22%), PMI must automatically cancel under federal law — based on your original amortization schedule, not extra payments you've made.
Two Paths to PMI Cancellation
| Method | LTV Threshold | Requirements |
|---|---|---|
| Request cancellation | 80% LTV | Written request to lender, good payment history, may need appraisal |
| Automatic cancellation | 78% LTV | Must be current on payments; based on original schedule |
| Home appreciation | 80% LTV (new appraisal) | Loan must be ≥ 2 years old; some lenders require 25% equity if < 5 years |
| Refinance to remove PMI | Any LTV | New loan with 20%+ equity at close; closing costs apply (2%–5%) |
What Counts as the Home's Value?
For the standard 80% and 78% milestones, lenders use the original purchase price or original appraised value — whichever is lower — not the current market value. This matters because even if your home doubled in value, the automatic 78% cancellation is still calculated against what you paid.
However, if you request early removal based on appreciation, you can submit a new appraisal showing the current value. Many homeowners who bought 3–5 years ago have seen significant appreciation and can remove PMI years ahead of schedule this way.
PMI Cost by LTV and Credit Score
| LTV at Purchase | Credit 760+ | Credit 720–759 | Credit 680–719 |
|---|---|---|---|
| 95% LTV (5% down) | 0.58%/yr | 0.78%/yr | 1.15%/yr |
| 90% LTV (10% down) | 0.38%/yr | 0.52%/yr | 0.78%/yr |
| 85% LTV (15% down) | 0.22%/yr | 0.32%/yr | 0.48%/yr |
Rates shown are approximate MGIC/Radian private mortgage insurance rates for 30-year fixed loans as of 2025. Actual rates vary by insurer and loan program.
How to Request PMI Removal
When your balance hits 80% of the original value (or a current appraisal confirms 80% LTV), send a written request to your loan servicer. You'll typically need: your account number, a statement that you're requesting PMI cancellation under the HPA, proof of good payment history (no 30-day late payments in the past year), and possibly an appraisal. The servicer must respond within 30 days.
Once you've removed PMI, that monthly savings can go directly toward accelerating your payoff or building a down payment for a next property. The home equity loan vs HELOC guide covers what to do with your growing equity after PMI is gone. And if you're in a higher-value market and evaluating financing options, the jumbo loan guide explains how conforming loan limits affect your rate and options.
Frequently Asked Questions
When can I request PMI removal?
When your loan balance reaches 80% of the original home value — meaning you've built 20% equity. You must have a good payment history (no 30-day lates in the past year, no 60-day lates in the past 2 years) and may need a new appraisal showing the home's value hasn't declined.
When does PMI cancel automatically?
Under the Homeowners Protection Act, PMI must automatically cancel when your loan balance reaches 78% of the original purchase price — based on your original amortization schedule. This happens whether or not you request it, as long as you're current on payments.
Do I need a new appraisal to remove PMI?
For the standard 80% milestone based on scheduled payments, many lenders don't require an appraisal. For early removal based on home appreciation or extra payments, most lenders require a full appraisal (typically $300–$600) or an AVM. Check with your servicer first.
Can I remove PMI if my home value increased?
Yes. If your home has appreciated significantly, a new appraisal showing LTV at or below 80% can trigger PMI removal earlier than your schedule. Most lenders require the loan to be at least 2 years old, and some require 25% equity (75% LTV) if the loan is less than 5 years old.
Is refinancing worth it just to remove PMI?
Refinancing to remove PMI makes the most sense when: (1) you'd also get a lower rate, (2) your equity is well above 20% so you'd lock in no PMI on the new loan, and (3) the break-even on closing costs is 2 years or less. Refinancing solely for PMI removal rarely pencils out if rates are similar.
Does PMI apply to FHA loans?
FHA loans have mortgage insurance premiums (MIP), not PMI — and the rules are different. For FHA loans originated after June 2013 with less than 10% down, MIP is permanent for the life of the loan. The only way to remove it is to refinance into a conventional loan once you have 20% equity.