When does PMI automatically terminate?

Under the Homeowners Protection Act of 1998, your lender must automatically terminate PMI on the date the loan is scheduled to reach 78 percent of the original home value, based on the original amortization schedule and provided you are current on payments.

When can I request PMI cancellation?

You can request PMI cancellation once your loan balance reaches 80 percent of the original home value. You must be current on your mortgage, have a good payment history, and the home value must not have declined. Some lenders may require a new appraisal.

Does paying extra principal remove PMI faster?

Yes. Extra principal payments reduce your loan balance faster, letting you reach the 80 percent LTV cancellation threshold years ahead of schedule. On a typical 30-year loan, an extra 200 dollars per month can remove PMI about three to five years earlier.

PMI Removal Calculator

Find the exact month your PMI will drop off, when you can request cancellation, and how much faster extra principal payments remove it.

HPA-compliant Closed-form amortization Extra-payment projections

Link copied

Your Mortgage

Original home value

Original loan amount

LTV: 90.0%

Interest rate

Loan term

Months already paid

Leave 0 if you have not started payments yet.

Extra principal per month (optional)

Any amount above your scheduled payment.

Your Results

Request cancellation at 80% LTV

Earliest you can ask lender

Month 72

Automatic termination at 78% LTV

Lender must drop it

Month 84

Monthly payment (P&I only)

$2,335

Time saved with extra payments

Final midpoint termination (final rule)

Month 180

How PMI removal works

Under the federal Homeowners Protection Act of 1998 (12 U.S.C. § 4901), there are three ways your conventional PMI gets removed:

1. You request cancellation at 80% LTV (borrower-requested)

You can send a written cancellation request to your servicer once your mortgage balance reaches 80 percent of the original home value, based on the loan's original amortization schedule. You must be current on payments, have a good payment history, and the servicer may require evidence that the property value has not declined. If your home has appreciated, the 80 percent threshold is based on current value, not original, and your lender may require an appraisal.

2. Automatic termination at 78% LTV

Your servicer must automatically terminate PMI on the date the mortgage balance is scheduled to reach 78 percent of the original home value, provided you are current on your payments. This is not optional for the lender. The 78 percent threshold is based on the original value and the original amortization schedule, so prepayments do not accelerate automatic termination (they only accelerate the 80 percent borrower-requested cancellation).

3. Final termination at loan midpoint

If PMI has not been removed earlier under the two rules above, the servicer must terminate it on the first day of the month after the midpoint of the amortization period. For a 30-year loan this is month 181, for a 15-year loan it is month 91. This protects borrowers whose home value dropped below the loan balance.

What this calculator does

The calculator uses the standard mortgage amortization formula to find the month your balance crosses each threshold. For 80 percent LTV it uses the actual (post-extra-payment) balance since that is what qualifies you to request cancellation. For 78 percent LTV it uses the original amortization schedule since federal law bases automatic termination on scheduled values, not actual balances. The monthly payment is calculated with the closed-form formula PMT = P * r / (1 - (1+r)^-n) where r is the monthly rate and n is the number of monthly payments.

Three ways to remove PMI faster

Make extra principal payments

Extra payments do not change your 78 percent automatic termination date (that is set by the original schedule) but they can bring your balance down to 80 percent much earlier. On a $360,000 loan at 6.75 percent, an extra $200 per month reaches 80 percent LTV about 24 months earlier than the schedule.

Request a new appraisal based on appreciation

If your home has gained value, you may qualify to remove PMI based on current value rather than original value. Different servicers have different rules. Fannie Mae typically requires that the loan be at least two years old, the LTV based on current value be 80 percent or less (or 75 percent or less if the loan is less than five years old), and you pay for a lender-approved appraisal. Freddie Mac has similar guidelines. Call your servicer first to confirm their specific process.

Refinance into a loan without PMI

If current rates are favorable, refinancing into a new conventional loan with the current (lower) LTV below 80 percent eliminates PMI entirely. This only makes sense if the interest savings plus PMI elimination exceeds the closing costs within a reasonable timeframe.

Frequently asked questions

Does my credit score affect PMI removal?

No. PMI removal rules under the Homeowners Protection Act apply regardless of your credit score at the time of request. Your original credit score affected your PMI rate but not your right to have it removed.

What if my lender refuses to cancel PMI?

If you meet the criteria and your servicer refuses, you have the right to file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint. The HPA is a federal law and servicers must comply.

Do these rules apply to FHA MIP?

No. The HPA covers conventional PMI only. FHA loans use Mortgage Insurance Premium (MIP), which has different rules. For most FHA loans originated after June 3, 2013, MIP lasts the entire loan term if your original LTV was above 90 percent. See our FHA MIP calculator for details.

Can I remove PMI if I am behind on payments?

Generally no. Both the 80 percent borrower-requested cancellation and the 78 percent automatic termination require you to be current on your mortgage. If you are behind, PMI stays until you catch up.

Does PMI removal happen the same day I hit 80%?

Not automatically at 80 percent. You must submit a written request to your servicer. The servicer then processes the request, which can take 30 to 60 days. The 78 percent automatic termination happens on its own but may take one or two billing cycles to appear on your statement.