When Can I Remove PMI?
Work out the exact month your loan balance reaches the point where private mortgage insurance can come off, compare what different down payments do to that date, and see how much sooner extra payments get you there.
How to Use This PMI Calculator
Three versions of the same $375,000 home at 6.75% are preloaded below, differing only in down payment and extra payments. Each one carries PMI until the balance falls to 80% of the original purchase price, and the amortization schedule shows precisely when that happens.
What to look at:
- 1.5% Down vs 10% Down - how much sooner a larger down payment gets you to the threshold, and how much total PMI each one costs along the way
- 2.10% Down + $200/mo - the same loan with extra principal, which is the only one of these levers still available to you after closing
- 3.Total PMI paid - the cumulative figure is usually the number that changes people's minds, not the monthly one
- 4.Switch to "Edit Individual Scenario" to put in your own purchase price, down payment, rate, and PMI rate
When PMI comes off, three ways
The same $375,000 home at 6.75%, with 5% down, 10% down, and 10% down while paying an extra $200 a month. Each scenario shows the month your balance reaches 80% of the original purchase price, which is when PMI can come off.
Tip: Switch to "Edit Individual Scenario" to enter your own price, down payment, and PMI rate.
The Three Ways PMI Comes Off
1. You request it at 80%
Once your balance reaches 80% of the home's original purchase price, you can ask your servicer in writing to cancel PMI. You need to be current on payments, have a good recent payment history, and generally have no second lien on the property. Your servicer may ask for an appraisal to confirm the value has not fallen. This is the date the calculator above reports, because it is the earliest point you can act on.
2. It cancels automatically at 78%
Under the Homeowners Protection Act, your servicer must terminate PMI on its own once the balance reaches 78% of the original value, as long as you are current. Nobody has to ask. The catch is that the gap between 80% and 78% is real money: several months to a couple of years of premiums, depending on your rate and term. Waiting for the automatic date is the expensive option.
3. The midpoint backstop
If neither threshold has been reached, PMI must still end at the midpoint of your amortization period, which is year 15 of a 30-year loan. This mostly matters for loans that were modified or that started with very little equity.
Original Value, Not Today's Value
This is the part most PMI calculators get wrong. The 80% and 78% thresholds are measured against the original purchase price, not what the home is worth today. If you bought at $375,000 and the home is now worth $450,000, you may well have 20% equity by current value while still being nowhere near 80% of the original price. Reporting that as "PMI can be removed" would be wrong.
Cancellation based on appreciation does exist, but it is a separate request on different terms: it typically requires a new appraisal at your expense, and servicers commonly apply a seasoning requirement of two to five years since closing with a stricter equity threshold. It is worth pursuing in a rising market, but it is not something you can schedule in advance. The date this calculator gives you is the one you can count on.
PMI Is Not FHA MIP
Everything above applies to private mortgage insurance on a conventional loan. FHA loans carry a mortgage insurance premium instead, and it does not work the same way. For most FHA loans originated after June 2013 with less than 10% down, MIP runs for the entire life of the loan and reaching 80% does nothing. With 10% or more down it runs 11 years.
If you are on an FHA loan and want to stop paying mortgage insurance, the route is usually refinancing into a conventional loan once you have enough equity, which is a trade against whatever rate you would be giving up. Model that trade in the refinance calculator before committing to it.
How to Get There Sooner
Extra principal payments
The most direct lever, and the only one still available after closing. Every dollar of extra principal moves the 80% date earlier and reduces total interest at the same time. See the full effect of extra payments.
A larger down payment, if you have not closed
Reaching 20% at closing avoids PMI entirely. Below that, every extra percent shortens the time you carry it. Compare down payment scenarios before you decide how much to put down.
Ask on time, in writing
Diarise the 80% date from the schedule above and send the request then. Servicers are not obliged to remind you, and the difference between requesting at 80% and waiting for automatic termination at 78% is money you simply do not get back.
Frequently Asked Questions
When can I remove PMI?
You can ask your servicer to cancel PMI once your loan balance reaches 80% of the home's original purchase price. Your servicer must cancel it automatically at 78%, provided you are current on payments. Both thresholds are measured against the original value, not what the home is worth now, so the date is predictable from your amortization schedule the day you close.
Is PMI removed automatically?
At 78% of the original value, yes, and your servicer is required to do it under the Homeowners Protection Act as long as your payments are current. At 80% you have to ask, in writing. The gap between those two points is typically several months to a couple of years of payments, which is why requesting cancellation at 80% is worth doing rather than waiting.
Does my home going up in value remove PMI sooner?
Potentially, but through a different route. The automatic and requested cancellation thresholds are based on the original purchase price. Cancellation based on appreciation is a separate request that usually requires a new appraisal at your expense, and servicers commonly apply a seasoning requirement of two to five years. This calculator uses the original purchase price, which is the conservative and predictable figure.
Do extra payments remove PMI faster?
Yes, and this is the one lever fully in your control. Extra payments reduce principal directly, so the balance reaches the 80% threshold sooner. On the sample loan here, paying an extra $200 a month moves PMI removal meaningfully earlier and also cuts total interest. Compare the scenarios above to see the exact difference.
Is FHA mortgage insurance the same as PMI?
No, and this is the most common and expensive mix-up. PMI applies to conventional loans and cancels at the thresholds above. FHA loans carry MIP instead, and for most FHA loans originated after June 2013 with less than 10% down, MIP lasts the entire life of the loan and cannot be cancelled by reaching 80%. Borrowers in that position typically have to refinance into a conventional loan to stop paying it.
What if I reach 80% but my payments have been late?
A good payment history is a condition of both requested and automatic cancellation. Servicers can decline or defer cancellation if you have recent late payments, and the automatic termination at 78% is deferred until you are current. Some also require that there be no second lien on the property.
PMI rules described here reflect the Homeowners Protection Act as it applies to conventional loans on single-family primary residences. Servicer requirements, loan programs, and state rules vary. Confirm the specifics with your servicer before acting.