PMI Removal Date Calculator
About PMI Removal
Private Mortgage Insurance (PMI) is required when your down payment is less than 20% of the home purchase price. Under the Homeowners Protection Act, you can request PMI cancellation when your loan balance reaches 80% of the original purchase price. Your lender must automatically terminate PMI when the balance reaches 78%. To cancel early, you may need a new appraisal showing sufficient equity. Making extra principal payments can significantly accelerate your PMI removal date.
Frequently Asked Questions
What is PMI and why do I need it?
PMI protects your lender (not you) if you default on your loan. It's required on conventional loans with less than 20% down payment and typically costs 0.5%–1.5% of the loan amount annually.
Can I request PMI removal before reaching 80% LTV?
No — the 80% threshold based on original purchase price is the minimum requirement under federal law. However, if home values have risen, a new appraisal showing 80% LTV based on current value may help.
Does PMI ever get removed automatically?
Yes. The Homeowners Protection Act requires lenders to automatically cancel PMI when the loan balance reaches 78% of the original purchase price, assuming you're current on payments.
How can I remove PMI faster?
Making extra principal payments, refinancing, or getting a new appraisal if home values have risen significantly can all accelerate PMI removal and save you thousands in premiums.
Is PMI the same as mortgage insurance for FHA loans?
No. FHA loans have mortgage insurance premiums (MIP) which work differently — they often cannot be removed regardless of LTV unless you refinance into a conventional loan.
Results are estimates only. PMI removal timelines depend on your actual loan amortization schedule, lender policies, and current LTV. Consult your lender or a licensed financial professional for precise dates.