Calculate when you can remove PMI from your mortgage. Factor in amortization and home appreciation to find your earliest removal date and total savings.
If you bought your home with less than 20% down, you may be paying private mortgage insurance (PMI) each month. Under the Homeowners Protection Act, many borrowers can request cancellation when the principal balance reaches 80% of the original value, and the servicer generally must terminate PMI automatically when the scheduled balance reaches 78%, as long as the loan is current.
This calculator estimates both the scheduled amortization path and an appreciation-adjusted path. The appreciation scenario is only a planning aid, but it can help you decide whether it is worth checking your current loan-to-value ratio and asking the servicer what documentation would be needed for an earlier review.
Enter your loan details, PMI amount, and an estimated annual appreciation rate to compare the scheduled timeline with a value-sensitive scenario.
Many homeowners continue paying PMI longer than necessary because they do not know the scheduled cancellation date or whether an updated valuation could support an earlier request. This calculator turns those questions into a structured estimate before you contact the servicer.
LTV (amortization only) = Remaining balance / Original value × 100 LTV (with appreciation) = Remaining balance / (Original value × (1 + appreciation rate)^years) × 100 PMI removal eligible when LTV ≤ 80% (borrower request) PMI auto-cancel when scheduled LTV ≤ 78% Monthly savings = Current PMI payment × remaining months of PMI
Result: Amortization only: 6.5 years | With 3.5% appreciation: 2.8 years | Save $5,940
A $360,000 loan on a $400,000 home (90% LTV) at 6.5%. Through amortization alone, the balance reaches $320,000 (80% LTV) in about 78 months (6.5 years). With 3.5% annual appreciation, the home value grows to ~$441,000 in 2.8 years, while the balance drops to ~$348,000 — an LTV of 79%. PMI removal saves $135/month × 44 months earlier = $5,940.
Every month you pay PMI after you are eligible for removal is money wasted. At $150/month, that is $1,800 per year in unnecessary insurance. Many homeowners pay PMI for 2-3 years longer than necessary simply because they do not check their current LTV. Set a calendar reminder to check your LTV annually and request removal as soon as you qualify.
In hot housing markets, homes can appreciate 5-10% per year. If you bought with 10% down (90% LTV); and your home appreciates 5% annually, your effective LTV drops to about 86% after just one year — without any extra payments. After two years of 5% appreciation, your LTV could be below 81%, making you eligible for removal. A $400 appraisal that saves $150/month in PMI pays for itself in under 3 months.
The fastest path to PMI removal combines appreciation with extra principal payments. If your home appreciates 3% annually AND you pay an extra $200/month toward principal, you can shave years off the PMI timeline compared to standard amortization alone.
Last updated:
This worksheet estimates two timelines: (1) the scheduled amortization path to 80% and 78% loan-to-value using the entered balance, rate, and remaining term, and (2) an appreciation-adjusted path that combines the declining balance with a user-supplied annual home-value growth rate.
The appreciation scenario is not a lender decision rule. Servicers may require written requests, payment-history standards, seasoning, and an appraisal or broker price opinion before agreeing to cancel PMI early.
At 80% LTV, you can REQUEST removal — you must contact your lender, be current on payments, and may need an appraisal. At 78% LTV based on the original amortization schedule, the lender MUST automatically cancel PMI without any action from you.
Yes. If your home has appreciated enough that the current LTV is below 80%, you can request PMI removal with a new appraisal. Most lenders require the loan to be at least 2 years old and that you have a good payment history. The appraisal cost ($300-$600) is typically worth it if PMI is $100+/month.
No. FHA Mortgage Insurance Premiums (MIP) cannot be removed based on LTV for loans made after June 3, 2013 with less than 10% down — MIP lasts the entire loan life. To eliminate MIP, you must refinance to a conventional loan. If you put 10%+ down on an FHA loan, MIP lasts 11 years.
Write to your loan servicer requesting cancellation, citing the Homeowners Protection Act. Include your loan number and evidence of current value (appraisal or comparable sales). You must be current on payments with no late payments in the past 12 months (or 24 months for some lenders).
Review the servicer's written criteria, make the request in writing, and keep records of the response. If you believe the servicer is not following applicable PMI-cancellation rules, you can escalate through the servicer's complaint channels or the CFPB.
Home appreciation varies significantly by location and market conditions. National averages are 3-5% per year historically, but your area may differ. Check Zillow, Redfin, or your local MLS for recent comparable sales. Conservative estimates are safer for financial planning.