When Can I Remove PMI?

The Two LTV Thresholds You Need to Know

The Homeowners Protection Act of 1998 sets two distinct milestones. At 80% LTV based on the original property value, you have the right to request cancellation in writing. Your servicer may require proof that you are current on payments and that no junior liens exist. At 78% LTV on the original amortization schedule, your servicer must remove PMI automatically — no request needed.

There is an important detail many borrowers miss: the automatic 78% cancellation is based on the schedule your loan was built on, not on extra payments you have made. If you have been paying ahead, your actual LTV may already be below 78%, but the servicer is only required to act when the schedule says you would have reached it. That is why the 80% request path matters — it lets you claim the benefit as soon as your real balance crosses the line, potentially months or years before the automatic date arrives.

How Extra Payments Move Your PMI Drop-Off Date

Every extra dollar you send to principal reduces your outstanding balance, which lowers your LTV faster than the original schedule assumed. The calculator shows two timelines: one following the standard amortization and one reflecting whatever extra payment amount you enter. The gap between the two dates is your payoff — the months of PMI premiums you avoid.

Many homeowners on personal-finance forums weigh the cost of a new appraisal against the PMI savings. If your home's market value has risen since purchase, an appraisal reflecting the higher value can push your LTV below 80% even sooner. The appraisal cost is a one-time expense, while PMI premiums recur monthly, so the math often favors ordering one. This calculator focuses on the payment side of the equation; your lender can tell you whether they accept a new appraisal or require a broker price opinion for PMI removal.

PMI rates vary by lender, credit score and down-payment size. The savings shown here use the PMI amount you entered. Ask your servicer for your exact monthly PMI charge if you do not have it.