PMI Removal Calculator

Under the Homeowners Protection Act of 1998, you can request PMI cancellation when your loan-to-value reaches 80% of the original home value via scheduled amortization. Lenders must automatically terminate PMI at 78% LTV (mid-point of the original amortization schedule). You can also request removal earlier if home appreciation has brought you below 80% - typically requires a new appraisal at your expense.

PMI typically runs 0.46% to 1.50% of the loan annually, depending on credit score and down payment. On a $400,000 loan, that's $153–$500/month. Borrowers with strong credit (740+) and a 10%+ down payment land near the low end; sub-680 credit with 5% down lands near the high end.

No. For FHA loans originated on or after June 3, 2013, MIP cannot be canceled if your initial LTV was over 90% - it stays for the life of the loan. If initial LTV was 90% or less, MIP drops after 11 years. The only way out is to refinance into a conventional loan once you reach 20% equity, which is the most common FHA-borrower strategy.

A borrower-requested cancellation usually closes within 30–60 days of request, provided the home value supports 80% LTV (appraisal usually required) and the loan is in good standing with no late payments in the past 12 months. Automatic termination at 78% LTV happens administratively without action needed from you.

PMI (private mortgage insurance) is insurance that protects the lender if you stop paying your mortgage. It is generally required when your down payment was less than 20%, meaning your LTV at purchase was above 80%.

Federal HPA rules require the automatic-termination dates (78%) to be measured against the original purchase price, not the current market value. For a request-based cancellation driven by appreciation, however, lenders may use the current value if your request includes an appraisal.