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Enter home value
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Your original mortgage balance
Enter loan amount
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How much you owe today
Enter current balance
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Enter interest rate
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Typical: 0.2%–2% of loan/year ÷ 12
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Affects how quickly you reach 80% LTV
Current LTV Ratio
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⚠ Note: PMI cancellation rules depend on your loan type and servicer. Conventional loans: request cancellation at 80% LTV (Homeowners Protection Act). FHA loans: MIP rules differ. Always contact your servicer directly.
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How PMI Removal Works
Private Mortgage Insurance (PMI) is required on conventional loans when your down payment is less than 20%. Under the Homeowners Protection Act (HPA), you have the right to request PMI cancellation when your loan balance reaches 80% of the original appraised value, or it terminates automatically at 78%.
LTV Formula
LTV = Current Loan Balance ÷ Current Home Value × 100
PMI cancellation threshold: 80% LTV (request) or 78% LTV (automatic). If your home has appreciated, your current LTV may already be below 80% even if your balance hasn't dropped that far — you can request a new appraisal to prove current value.
💡 Faster PMI removal: Making extra principal payments accelerates your LTV drop. A $200/month extra payment on a $300K loan at 7% can eliminate PMI 2–3 years earlier, saving thousands.
Frequently Asked Questions
Submit a written request to your loan servicer when your balance reaches 80% of the original appraised value. You must have a good payment history (no payments 30+ days late in the past year) and be current on payments. Your servicer may require a new appraisal at your expense ($300–$600) to confirm the current value hasn't declined.
Under the HPA, PMI must automatically terminate when your loan balance is scheduled to reach 78% of the original purchase price — even if you don't request it. This is based on your original amortization schedule, not actual payments. For loans originated after July 29, 1999, this is a legal requirement for conventional loans.
FHA loans have Mortgage Insurance Premiums (MIP), not PMI. For FHA loans with 10%+ down payment originated after June 2013, MIP cancels after 11 years. For loans with less than 10% down, MIP is permanent for the life of the loan — the only way to remove it is to refinance into a conventional loan once you have 20% equity.
Yes, for appreciation-based early cancellation. If your home has increased in value and your current LTV is below 80%, you can request PMI cancellation with a new appraisal. Requirements vary by servicer and loan age (typically must have had the loan 2+ years). This can be a powerful tool in markets with strong appreciation.
Yes: (1) Piggyback loan (80-10-10) — no PMI on first mortgage; (2) Lender-paid PMI (higher rate, permanent); (3) VA loans — no PMI ever; (4) Some credit unions offer no-PMI loans with less down. Each has trade-offs — compare total cost over your expected ownership period to find the best option for your situation.
Significant appreciation lets you request early cancellation with a formal appraisal (~$400–$600) showing LTV is at 80% or below. Lenders typically require 2 years of on-time payments before approving appreciation-based cancellation. In strong markets, this can eliminate PMI 5–10 years ahead of the amortization-based cancellation date.
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