At what LTV does PMI automatically cancel?

For conventional loans, the servicer must automatically terminate PMI when the loan balance reaches 78% of the home's original value, based on the original amortization schedule, as long as payments are current.

Can I request PMI cancellation early?

Yes. You can typically request cancellation in writing once the balance reaches 80% of the original value. Servicers may require a good payment history and sometimes a current appraisal.

PMI Removal Date Calculator — When Does My Mortgage Insurance Drop Off?

How PMI removal actually works

Private mortgage insurance protects your lender, not you, and on a conventional loan it is temporary by law. The federal Homeowners Protection Act sets two bright lines tied to your loan-to-value ratio, both measured against the home's original value — the lower of the purchase price or the appraised value when you bought it, not today's market value.

80% LTV — you can request cancellation. Once your balance is scheduled to reach 80% of the original value, you may submit a written request. Servicers generally require that you be current on payments and have a clean recent history, and they may ask for an appraisal to confirm the home hasn't lost value.
78% LTV — automatic termination. When the balance reaches 78% of the original value on the original amortization schedule, the servicer must cancel PMI automatically, provided you're current.

There's also a backstop: if neither threshold is hit on schedule, PMI must end at the midpoint of the loan's amortization period — month 180 of a 30-year loan — as long as you're current.

The formula

This calculator amortizes your loan one month at a time and watches the balance fall:

monthly payment = L × r ÷ (1 − (1 + r)⁻ⁿ)
where r = annual rate ÷ 12, n = term in months, L = loan amount

Each month it charges interest on the outstanding balance, applies the rest of your payment (plus any extra principal) to the balance, and records the first month the balance drops to or below 80% and 78% of the original value you entered. Because the legal automatic-termination date is fixed to the original schedule, the 78% date here ignores extra payments by design — that mirrors how servicers handle it.

Worked example

On a $600,000 home with a $570,000 loan at 5.65% over 30 years, you start at 95% LTV. The 80% target balance is $480,000 and the 78% target is $468,000. Amortization alone takes years to chew through that much principal, which is exactly why borrowers who can add extra principal — or who see strong appreciation and pay for a new appraisal — often cancel far earlier than the automatic date.

Note: Rules differ for FHA loans, where mortgage insurance premiums (MIP) often last the life of the loan and follow separate rules. This tool models conventional-loan PMI under the Homeowners Protection Act. Always confirm the exact terms in your loan documents with your servicer.

Frequently asked questions

Does my home's current value count?

For automatic termination, no — the law uses the original value. But many servicers will let you cancel early based on a current appraisal if appreciation has pushed your equity past the threshold. That path is at the servicer's discretion and usually requires you to pay for the appraisal.

Do extra payments remove PMI sooner?

They can accelerate the 80% request date because your balance falls faster. They do not change the 78% automatic date, which is locked to your original amortization schedule.

What if I have an FHA loan?

FHA MIP rules are different and often require a refinance into a conventional loan to remove the premium. This calculator is built for conventional PMI.