PMI doesn’t have to run for the life of a loan — federal law sets both a request date and an automatic termination date tied to how much of the original home value is still financed.
How it works
A servicer must automatically terminate PMI once the balance is scheduled to reach 78% of the home’s original value, assuming payments are current. A borrower can request cancellation earlier, once the balance reaches 80%, if extra payments got there sooner.
What this does not include
Some lenders also allow cancellation based on a new appraisal showing increased home value rather than only paydown — this calculator only computes the paydown-based path the federal law guarantees, not appraisal-based early removal some lenders offer voluntarily.
How to use this calculator
- Enter your home’s original value at loan origination and your current balance.
- Optionally enter your monthly PMI cost to see the annual amount at stake.
Frequently asked questions
Do I have to request PMI cancellation, or does it happen automatically?
Both apply — you can request it at 80% LTV, but if you don’t, your servicer must automatically terminate it at 78% LTV regardless, as long as payments are current.
What if I’ve missed payments?
Automatic termination and the right to request cancellation both generally require payments to be current — missed payments can delay either path.
Does refinancing remove PMI?
Refinancing into a new loan without PMI (typically requiring at least 20% equity) removes it immediately, rather than waiting for the paydown schedule this calculator models.
