Remove Pmi Calculator

Paying private mortgage insurance after you already own 20 percent of your home is a monthly gift to your lender. Enter your loan balance and home value, and this remove PMI calculator shows your current LTV, whether PMI can be removed on request at 80% or will terminate automatically at 78%, exactly how much principal to pay down to reach 80%, and your annual savings once it is gone.

Quick Answer

How to use the remove PMI calculator

Results stay hidden until you click Calculate. Fill in the four fields, in order, and read the two tracks before you call your servicer.

1. Current loan balance: the principal you still owe, not counting interest or escrow. Your monthly statement or your servicer’s portal shows it.
2. Current home value: what the home is worth today. A recent appraisal is what your servicer will use; a careful market estimate is fine for planning.
3. Original purchase price (optional): what you paid for the home. It feeds the automatic termination track, which is always measured against 78% of the original value. Leave it blank and that line is skipped.
4. Monthly PMI (optional): your current monthly premium, which the calculator multiplies by 12 for the annual savings line.

The readout gives you the LTV, a status verdict, the target balance, the paydown number, the automatic-termination track when you supplied an original price, and the annual savings when you supplied a monthly PMI amount. If you want to see PMI inside the full monthly payment first, run the mortgage payment calculator, then come back here with the balance from the remaining mortgage balance calculator and check where you stand against the 80% line.

How PMI removal is worked out

The math is three lines. LTV is the balance divided by the value; the 80% track is 80% of the current value; the 78% track is 78% of the original price.

Two honest details about this tool’s behaviour. First, the paydown row never shows a negative number: if you are already at or below 80%, it reads $0, while the formula line below shows the raw figure (such as -$40,000 at 70% LTV). Second, the status compares the unrounded LTV, so a balance of $273,001 on a $350,000 value displays 78.00% but still reads “can be removed on request” because the true LTV is 78.0003%. Both behaviours are kept as they are and stated here so nothing surprises you.

Worked example: $320,000 balance, $380,000 value

The pre-filled run is the classic case: 84.21% LTV, PMI still required, $16,000 of principal standing between you and the 80% line. Here it is next to the two boundary cases, all produced by the tool above.

Notice the middle row: exactly 80.00% LTV earns “can be removed on request”, not automatic termination. The automatic track needs 78% or below, and it is the only track that happens without you asking.

The two tracks: request at 80%, automatic at 78%

Federal law gives conventional borrowers two exits from PMI, and they work differently. Know which track you are on before you call.

Borrower-requested cancellation at 80% LTV: once your balance reaches 80% of the original value, you can ask your servicer to cancel PMI in writing. The servicer must grant it if you are current, have a good payment history (the statute’s definition is no payments 30 or more days late in the 12 months before the request, and none 60 or more days late in the 12 months before that), certify there are no junior liens on the property, and show the value has not declined below the original value, usually with an appraisal at your cost. Extra principal payments count: they can bring you to 80% years ahead of schedule, and you do not have to wait for the scheduled date. This calculator measures the request track against your current value, which is the practical way most borrowers check first; the statutory right is measured against the original value on the original schedule, so confirm your servicer’s exact rule before ordering an appraisal.

Automatic termination at 78%: your servicer must drop PMI on the date your balance is first scheduled to reach 78% of the original value, provided you are current on payments. Extra payments do not move this date, which is why waiting for the automatic track costs months of premiums compared to requesting at 80%. A final backstop terminates PMI at the loan’s midpoint regardless, which is year 15 on a 30-year mortgage. If your servicer has not dropped PMI at 78% and you are current, call and cite the 78% rule: the CFPB has found servicers failing to terminate PMI on time because their data was wrong.

Appreciation can end PMI years early

Rising home values do the same work as paydown. If your balance has barely moved but the home is worth far more, a new appraisal can put you at 80% LTV on current value long before the amortization schedule would.

This route runs on investor rules rather than the federal statute. Fannie Mae and Freddie Mac let servicers cancel PMI based on a current appraisal, but with stricter thresholds tied to how long you have had the loan: typically 75% LTV or lower in loan years two through five, and 80% or lower after five years, with the two-year seasoning waived if substantial improvements raised the value. Your servicer orders the valuation through its process at your expense, and some servicers require their own approved appraiser. Keep a copy of everything and send the written request by certified mail so you have proof of the date.

FHA loans are different

FHA loans do not carry PMI; they carry mortgage insurance premium (MIP), and the Homeowners Protection Act does not apply to them. On most FHA loans originated after mid-2013 with less than 10% down, the annual MIP lasts the life of the loan. With 10% or more down it falls off after 11 years. Older FHA loans can still cancel MIP at 78% LTV under HUD’s rules.

The standard exit from FHA MIP is refinancing into a conventional loan once you have 20% equity, which lands you at 80% LTV and no PMI at all. Run the cost to refinance mortgage calculator to check whether the closing costs beat waiting, and remember this page’s 80/78 rules apply only to conventional loans.

What competing calculators miss

Most PMI tools do one job and stop, and none of them show you both exit tracks on a single screen with the numbers that turn the answer into action:

• Our own mortgage PMI calculator (a separate page on this site) estimates the monthly PMI cost and the removal date from an amortization schedule. It answers “how much and when”; this page answers “am I there yet, and what exactly do I owe to get there”.
• Lower.com’s PMI removal calculator: clean 80% and 78% milestones with the original-value convention and a worked timeline. Strength: it states which convention it uses. Gap: no paydown number, no annual-savings line.
• UnitCalculatorTool’s PMI calculator: monthly cost, months until removal, total PMI paid. Strength: the quick-answer format. Gap: a removal estimate without the request track mechanics or the appraisal decision.
• OnlyCalculators’ PMI calculator: cost, removal date, total paid, plus a year-by-year PMI table. Strength: the table shows the long cost of waiting. Gap: it still does not give the lump-sum paydown that ends PMI now.
• LegalClarity’s guides: thorough on the statute, including the two-window good-payment-history definition. Gap: guidance without a working tool behind it.
• The gap this page fills: the request track and the automatic track on one screen, the exact principal paydown to 80%, the annual savings that decides the appraisal question, a substituted formula for every result, and an honest note that whole-dollar rounding can make a displayed 78.00% LTV still read “on request”.

Frequently asked questions

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