Mortgage PMI Removal Calculator
Find when your private mortgage insurance can be removed — the month your loan reaches 80% LTV (request) and 78% LTV (automatic termination).
Result
- Starting LTV90.0%
- Monthly payment (P&I)$1,618.79
- Request removal (80% LTV)month 89 (7.4 yr)
- Automatic termination (78% LTV)month 103 (8.6 yr)
- Balance at 78% LTV$234,000.00
Step-by-step
- Starting LTV = loan ÷ value = $270,000.00 ÷ $300,000.00 = 90.0%.
- Amortize at $1,618.79/mo and track when the balance falls to 80% ($240,000.00) and 78% ($234,000.00) of the original value.
- You may request removal at month 89 (7.4 yr); PMI auto-terminates at month 103 (8.6 yr).
How to use this calculator
- Enter the original home value and your starting loan amount.
- Enter the interest rate and loan term.
- Read the month PMI auto-terminates (78% LTV) and when you can request removal (80%).
- Consider extra payments or a new appraisal to remove PMI sooner.
About this calculator
Private mortgage insurance (PMI) is usually required when you put down less than 20% on a home, but it does not last forever. Under the federal Homeowners Protection Act, your lender must automatically terminate PMI once your loan balance reaches 78% of the home’s original value (on the scheduled amortization), and you have the right to request cancellation once you hit 80% loan-to-value (LTV). This calculator amortizes your mortgage and pinpoints the month each threshold is reached, so you know when to ask your servicer to drop PMI (the 80% request) and when it falls off automatically (78%). Note the law uses the original value, so simply paying down the scheduled balance gets you there — though extra principal payments, or a new appraisal showing the home has appreciated, can let you cancel even sooner.
How it works — the formula
Starting LTV = Loan ÷ Original value
Amortize monthly; find first month balance ≤ 80% and ≤ 78% of original value
Request at 80%, automatic at 78%The scheduled balance is tracked down each month; the law keys cancellation to fixed LTV thresholds of the original value.
Worked examples
- Inputs:
- homeValue=300000, loan=270000, rate=6, term=30
- Output:
- 80% at month 89, 78% at month 103
- Inputs:
- homeValue=400000, loan=380000, rate=7, term=30
- Output:
- later removal (higher start LTV)
- Inputs:
- homeValue=300000, loan=240000, rate=6, term=30
- Output:
- No PMI (starts at 80%)
Limitations
- Uses scheduled amortization vs original value, per the HPA.
- Extra payments or appreciation-based cancellation handled separately.
- FHA MIP follows different rules and is not modeled.
Estimate per the Homeowners Protection Act; confirm with your servicer.