PMI Removal Calculator - When Can You Cancel Private Mortgage Insurance? (2026)
Private mortgage insurance costs you hundreds of dollars every month. This calculator projects exactly when you can remove it, based on your specific mortgage, payment amount, and local appreciation. See both the request and automatic cancellation paths, plus how extra payments can accelerate removal.
This calculator provides estimates for educational purposes only. It is not affiliated with any bank, lender, or financial institution. Results are not a loan offer or guarantee of terms. Consult a licensed mortgage professional for advice specific to your situation.
Calculate Your PMI Removal Timeline
LTV (Based on Purchase Price)
85.0%
LTV (Based on Current Value)
79.1%
Request Removal (80% LTV)
November 2029
43 months from now
Automatic Cancel (78% LTV)
January 2031
57 months from now
Via Appraisal (80% of market value)
May 2026
1 months (at 4% appreciation)
Accelerate PMI Removal with Extra Payments
+$100/month
April 2029
7 months sooner
+$200/month
October 2028
13 months sooner
+$500/month
January 2028
22 months sooner
The Two PMI Removal Paths
Once your mortgage balance drops to 80% of the original purchase price, you can formally request PMI removal. Requirements:
- Current on all payments
- Good payment history (no 30-day lates in past 12 months)
- May need a new appraisal ($300-$500)
- Some lenders use original price, others allow current market value
Under the Homeowners Protection Act (1998), your lender must automatically cancel PMI when your balance reaches 78% of the original purchase price based on the original amortization schedule.
- No request needed
- No appraisal needed
- Based on original purchase price only
- Applies to conventional loans after July 1999
The Appraisal Path: Remove PMI Early
If your home has appreciated significantly since purchase, you may be able to remove PMI earlier by ordering a new appraisal. If the appraisal shows your current LTV is below 80% based on market value, your lender may agree to cancel PMI.
Is it worth ordering an appraisal?
An appraisal costs $300-$500. If your PMI is $200/month, the appraisal pays for itself in 2-3 months. If your PMI is $100/month, it takes 3-5 months. Either way, it is usually worth it if you believe your home has appreciated enough to cross the 80% LTV threshold.
Note: Not all lenders accept the appraisal path. Contact your servicer before ordering an appraisal to confirm their requirements. Some require you to have owned the home for at least 2 years.
Typical PMI Costs
PMI rates depend on your LTV ratio and credit score. Higher down payments and higher credit scores mean lower premiums.
| LTV Level | Annual Rate | Monthly on $350K |
|---|---|---|
| 95% LTV | 1.0% - 1.5% | $292 - $437 |
| 90% LTV | 0.5% - 1.0% | $146 - $292 |
| 85% LTV | 0.3% - 0.7% | $87 - $204 |
Step-by-Step PMI Removal Process
Check your LTV
Use the calculator above to verify your LTV is at or below 80%. Check both the original purchase price basis and the current market value basis.
Contact your mortgage servicer
Call or write to your servicer. Ask about their specific PMI cancellation requirements and whether they accept current appraised value or only original purchase price.
Submit a written request
Most lenders require a formal written request for PMI cancellation. Include your loan number, current balance, and the basis for your request (balance reached 80% or home has appreciated).
Order appraisal if needed
If required, your servicer will order an appraisal at your expense ($300-$500). The appraiser must be selected by the lender, not by you.
Wait for confirmation
Once approved, PMI should be removed within 30 days. Check your next statement to confirm the PMI charge has been dropped. If it has not, follow up immediately.
Frequently Asked Questions
When can I request PMI cancellation?
You can request PMI cancellation once your mortgage balance reaches 80% of your home's original purchase price. You must be current on payments and have a good payment history. Some lenders may require a new appraisal at your expense ($300-$500).
When does PMI automatically cancel?
Under the Homeowners Protection Act of 1998, your lender must automatically cancel PMI when your mortgage balance reaches 78% of the original purchase price, based on the original amortization schedule. No request or appraisal is needed. This applies to conventional mortgages originated after July 29, 1999.
Can I get PMI removed based on home appreciation?
Yes. If your home has appreciated and your current LTV based on market value is below 80%, you can request PMI removal by ordering a new appraisal. The appraisal costs $300-$500 but can save you thousands in annual PMI premiums. Your lender must agree to accept the appraisal.
How much does PMI cost?
PMI typically costs 0.3% to 1.5% of the original loan amount annually, depending on your LTV and credit score. On a $350,000 mortgage, that is $87 to $437 per month. Higher LTV ratios and lower credit scores mean higher PMI rates.
Does FHA mortgage insurance work the same as PMI?
No. FHA mortgage insurance premium (MIP) has different rules. For FHA loans made after June 2013 with less than 10% down, MIP lasts the entire life of the loan and cannot be cancelled. The only way to remove it is to refinance into a conventional mortgage once you have 20% equity.
Can extra payments help me cancel PMI sooner?
Yes. Extra principal payments reduce your mortgage balance faster, bringing you to the 80% LTV threshold sooner. Even $100-$200 extra per month can shave months or years off your PMI timeline. The calculator above shows exactly how much sooner you could reach removal with different extra payment amounts.