The exact date you can cancel PMI — and what appreciation does to it
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Request Cancellation (80% LTV)
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Automatic Termination (78%)
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Via Appreciation + Appraisal
$—
PMI You Pay Monthly
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Current LTV (Orig. Value)
$—
Saved by Acting at 80%
Loan balance 80% of original value (request threshold)
PMI status uses the same 80%/78% crossover months computed above: "Active" before you're eligible to request cancellation, "Cancelable" once you hit 80% LTV, "Terminated" once the loan auto-terminates PMI at 78%.
PMI protects the lender, but you pay for it — typically $100–$300 every month. Federal law (the Homeowners Protection Act) gives you three exits, and your servicer is only obligated to volunteer the slowest one. This calculator computes all three dates for your exact loan: the 80% LTV request date, the 78% automatic date, and the appreciation-plus-appraisal shortcut that most owners in rising markets never realize they have.
Your Three Ways Out of PMI
Route
Trigger
Your action
Request cancellation
Balance hits 80% of original value
Written request; good payment history required
Automatic termination
Balance hits 78% of original value
None — servicer must cancel
Current-value cancellation
New appraisal shows 75–80% LTV on today's value
Request + pay for appraisal (~$500); lender rules vary (often 75% if owned <5 yrs, 80% after)
The gap between the first two routes is pure money: on a typical loan, waiting for automatic termination instead of requesting at 80% costs 10–20 extra months of premiums — often $2,000–$4,000 — which the calculator prices for your numbers.
The Appreciation Shortcut Deserves More Fame
Scheduled amortization takes 7–10 years to reach 80% LTV on a low-down-payment loan. But LTV has a numerator and a denominator: at 4%/yr appreciation, a 90%-LTV loan reaches 80% of current value in roughly 3 years — less if you bought before a hot stretch. A $500 appraisal that kills a $170/month premium pays for itself in three months. If your market has risen since you bought, this is very likely your fastest exit; the calculator's third date shows it.
What PMI Costs While You Wait
Credit score at origination
Typical PMI rate (10% down)
Monthly on a $342k loan
760+
~0.3–0.4%/yr
$86–$114
700–759
~0.5–0.8%/yr
$143–$228
640–699
~0.9–1.5%/yr
$257–$428
FHA Loans: Different (Worse) Rules
FHA mortgage insurance (MIP) is not covered by the cancellation rights above: with under 10% down, MIP lasts the life of the loan regardless of equity. The standard escape is refinancing into a conventional loan once you reach ~80% LTV — run that trade in the Refinance Savings Calculator and the FHA specifics in the FHA Loan Calculator.
How to Use the Calculator — and Then What
Enter your original price, original loan amount, rate, and how many months you've paid.
Set your PMI rate (it's on your closing disclosure or annual escrow statement) and a realistic local appreciation figure.
Read your three dates. If "eligible now" appears anywhere, act this week.
To request: a short written letter to your servicer citing the Homeowners Protection Act, current on payments, no second liens. For the current-value route, ask the servicer for their appraisal process first — they must use their ordered appraisal, not one you commission independently.
Frequently Asked Questions
Does extra principal speed up PMI removal?
Directly — every extra dollar moves the balance toward the 80% line sooner. If you're within a year of the threshold, a modest lump sum plus the written request is often the cheapest PMI exit of all.
Will my servicer tell me when I can cancel?
They must disclose your rights annually and must auto-cancel at 78% — but nothing requires them to remind you at 80%. The request date is on you; that's exactly why this calculator exists.
What are the conditions on cancellation?
Good payment history (no 30-day lates in 12 months, none 60-day in 24), no junior liens on the home, and — for current-value cancellations — an appraisal the servicer orders. Investment properties face stricter LTV thresholds.
Is PMI ever tax-deductible?
The PMI deduction has expired and been revived repeatedly by Congress; in recent years it has been unavailable. Check current-year rules, but don't plan around it.
Should I refinance just to remove PMI?
Only if the rate math independently works — closing costs of 2–5% usually dwarf a year of PMI. The appraisal route achieves the same removal for ~$500 without touching your rate.
My home value dropped — can PMI come back?
No. Once canceled or terminated, PMI is gone for that loan regardless of later value changes.
Is my information private?
Yes — loan details are computed locally in your browser and never transmitted.
PMI has a built-in expiration — but the affordable exits require you to act. Put the 80% date on your calendar, check the appreciation shortcut yearly, and send the letter the month you qualify. Few letters in personal finance pay $150+ a month for five minutes of writing.