Intergtm

PMI Removal Timeline Calculator

Enter your loan details to see when PMI will be automatically cancelled, your total PMI cost, and how extra payments can eliminate PMI sooner.

Inputs

$

Original purchase price or appraised value at closing

$

Original loan balance at closing (not current balance)

$

Your current outstanding balance

%

Months left on the loan (30yr=360, 15yr=180)

%

Annual PMI rate as % of original loan amount

$

Additional monthly principal payment

%

Annual appreciation for LTV tracking (0 = use original value only)

Results update as you type, and the address bar keeps your numbers so the link you share reopens this exact calculation.

Months until PMI is removed

46

Detailed results
Total PMI cost until removalTotal PMI cost from today until automatic cancellation.$10,350
Monthly PMI amountBased on 0.75% annual PMI rate on the $360,000 original loan amount.$225
Current LTV ratioCurrent loan-to-value ratio based on original property value.85%
Target balance for PMI removalBalance must fall to or below this level for PMI to be automatically removed (80% of original property value).$320,000
Balance still above targetHow much principal you still need to pay down to reach the 80% LTV threshold.$20,000
Months until removal (with extra payment)-1
Months saved with extra paymentMonths of PMI removed by making the extra monthly payment.0
Total PMI cost (with extra payment)$10,350

What this result means

Months until PMI is removed: 46.

Your current LTV is 85.0%. At your scheduled payment, PMI will be automatically cancelled in 3 years and 10 months (46 months), once your balance reaches $320,000. At 0.75% annually on your original $360,000 loan, you are paying $225/mo in PMI — a total of $10,350 remaining before cancellation.

Year-by-year PMI removal schedule

Annual snapshot of your loan balance, LTV ratio, cumulative PMI paid, and (when applicable) appreciated property value.

Year-by-year PMI removal schedule. 27 rows, first 12 shown.
YearBalanceLTV (%)Cumulative PMI paidAppreciated value
1$335,21283.8%$2,700$400,000
2$330,10482.53%$5,400$400,000
3$324,65481.16%$8,100$400,000
4$318,83879.71%$10,350$400,000
5$312,63478.16%$10,350$400,000
6$306,01376.5%$10,350$400,000
7$298,94974.74%$10,350$400,000
8$291,41372.85%$10,350$400,000
9$283,37170.84%$10,350$400,000
10$274,79168.7%$10,350$400,000
11$265,63666.41%$10,350$400,000
12$255,86863.97%$10,350$400,000

How this is calculated

Monthly PMI = original_loan_amount × pmi_rate / 100 / 12
PMI removal threshold = original_property_value × 0.80

Amortization each month:
  interest_charge = balance × (annual_rate / 100 / 12)
  principal_charge = monthly_payment − interest_charge + extra_payment
  new_balance = balance − principal_charge

PMI is removed in the first month where new_balance ≤ original_property_value × 0.80
(or ≤ appreciated_value × 0.80 when home_appreciation_rate > 0)

Appreciated value at month m = original_property_value × (1 + appreciation_rate/100/12)^m

What is PMI and why does it exist?

Private mortgage insurance (PMI) is a policy that protects your lender — not you — if you default on your loan. Lenders typically require it when you put down less than 20% of the purchase price, because a smaller down payment means the lender is exposed to more risk. PMI is added to your monthly payment and is calculated as an annual percentage of either the original loan amount (most common) or the outstanding balance, depending on your policy type.

The Homeowners Protection Act and automatic cancellation

The Homeowners Protection Act of 1998 (HPA) is the federal law that governs PMI cancellation for conventional single-family loans. It establishes two important rights:

Automatic termination. Your servicer must automatically cancel PMI when your scheduled amortization — the normal paydown of your loan according to your original payment schedule — brings your balance to 78% of the original purchase price. You do not need to request this; the servicer is legally required to do it. Note that "original purchase price" means the value at closing, not the current market value.

Borrower-requested cancellation. You have the right to request PMI cancellation in writing once your balance reaches 80% of the original property value (or appraised value, depending on your servicer's policy). The lender may require you to demonstrate a good payment history and, in some cases, obtain a new appraisal showing that the property value has not declined. This 80% threshold is what this calculator uses as its primary target, because it is the point where you can act — not just wait.

How this calculator works

The simulation starts from your current balance and applies your scheduled monthly payment (calculated from the remaining term and current balance) plus any extra payment you specify. Each month, it checks whether the resulting balance has fallen to or below 80% of the effective property value. If you enter a home appreciation rate, the effective property value grows each month using a monthly compounding rate, which raises the 80% threshold and can accelerate removal.

The total PMI cost is simply the monthly PMI amount multiplied by the number of months until removal.

How to request early cancellation

Once your balance reaches 80% of the original value through your regular payments, you can submit a written request to your servicer. Your servicer may require that you: - have a good payment history (no 30-day late payments in the past year, no 60-day late payments in the past two years) - provide evidence that the property value has not declined below the original value - in some cases, obtain an appraisal at your expense

If your home has appreciated substantially, a new appraisal may show that your current LTV is already below 80% even if your loan balance has not dropped that far based on the original value. This is a separate process from HPA-mandated cancellation and is governed by your loan agreement and investor guidelines.

Extra payments as an accelerant

Making additional principal payments each month directly reduces your balance and can meaningfully shorten the time until PMI is removed. The "months saved" figure in the results shows the reduction in PMI duration from your specified extra payment. Because you stop paying PMI sooner, the savings compound: you avoid both the PMI premiums and the interest you would have paid on the balance that the extra payment eliminates.

Assumptions

  • The calculator applies only to conventional mortgage loans. FHA, VA, and USDA loan mortgage insurance rules differ and are not modelled.
  • The 80% LTV PMI removal threshold is based on the original property value (purchase price or appraised value at closing), consistent with the Homeowners Protection Act.
  • Monthly PMI is calculated as original_loan_amount × pmi_rate / 100 / 12. Actual premiums may vary based on insurer, credit profile, and loan-to-value at origination.
  • The base monthly payment is computed from the current balance and remaining term at the stated interest rate; this approximates the scheduled payment for a loan already in progress.
  • The interest rate is fixed for the entire remaining term. Adjustable-rate scenarios are not modelled.
  • Extra monthly payments are applied entirely to principal.
  • Home appreciation is modelled using continuous monthly compounding at the specified annual rate. Actual appreciation is unpredictable and may differ significantly.
  • Appreciation-based LTV tracking is for informational purposes. HPA automatic cancellation uses only the original property value; appreciation may support an early cancellation request but is subject to servicer appraisal requirements.
  • PMI is assumed to be active today (i.e., current LTV exceeds 80% based on the original property value).
  • The simulation does not account for servicer-specific rules, payment history requirements, or appraisal costs associated with early cancellation requests.

Frequently asked questions

›When is PMI automatically cancelled?

Under the Homeowners Protection Act, your servicer must automatically cancel PMI on the date your scheduled amortization brings your loan balance to 78% of the original purchase price — with no action required on your part. This calculator targets the 80% LTV threshold, which is when you are eligible to request cancellation in writing (before automatic termination kicks in at 78%).

›Can I request early cancellation before the automatic date?

Yes. Once your balance reaches 80% of the original property value through your regular payment schedule, you can submit a written cancellation request to your servicer. You will generally need a good payment history (no recent late payments) and may need to certify or demonstrate that the property value has not declined. Your servicer may also require an appraisal. If your home has appreciated significantly, an appraisal showing a current value high enough to bring your LTV below 80% can also support an early cancellation request, though that process is governed by your loan agreement rather than the HPA directly.

›Does home appreciation help remove PMI faster?

It depends on the type of removal. For HPA-mandated automatic cancellation, only the original purchase price matters — appreciation is irrelevant. However, if your home has appreciated and you request early cancellation, your servicer may order an appraisal using the current market value. If the new appraised value puts your LTV at or below 80%, you may qualify for removal even if your balance has not dropped far enough based on the original price. This calculator lets you model both scenarios: enter 0% appreciation to track against the original value, or enter an estimated annual appreciation rate to see how a rising value affects your effective LTV over time.

›Is PMI tax-deductible?

The deduction for mortgage insurance premiums has been available periodically under the tax code but has expired and been reinstated multiple times. As of this writing, the deduction is not permanently established and its availability depends on current congressional action. Do not assume PMI is currently deductible without confirming with a tax professional or reviewing current IRS guidance for the relevant tax year.

›What is the difference between PMI auto-cancellation at 78% vs. 80% LTV?

The Homeowners Protection Act sets two thresholds. At 80% LTV (based on the original property value), you gain the right to request PMI cancellation in writing — but your servicer can deny the request if your payment history does not meet requirements or if the property value has declined. At 78% LTV (reached through the scheduled amortization, not counting extra payments unless your servicer counts them), your servicer must cancel PMI automatically without any request from you. This calculator focuses on the 80% threshold because it is the first actionable date.

›Does the HPA apply to all mortgage loans?

The Homeowners Protection Act applies to conventional (non-government-backed) residential mortgage loans originated on or after July 29, 1999. It does not apply to FHA loans (which have their own mortgage insurance premium rules governed by HUD), VA loans (which do not require mortgage insurance), or USDA loans. If you have an FHA loan, the MIP cancellation rules are different and generally require refinancing if your original down payment was less than 10%.

›How is my monthly PMI amount calculated?

PMI premiums vary by lender, insurer, loan type, down payment size, and credit score. The most common structure is an annual rate expressed as a percentage of the original loan amount, divided by 12 to get the monthly charge. This calculator uses that approach. Actual premiums quoted by your insurer may differ; check your closing disclosure or contact your servicer for your exact rate.

›Will making extra principal payments trigger PMI removal sooner?

Extra payments reduce your balance faster and can bring you to the 80% threshold sooner, letting you request cancellation earlier. However, the HPA's automatic cancellation at 78% LTV is based on the original amortization schedule — some servicers do not count extra payments toward the automatic cancellation date, though the lowered balance still counts toward your cancellation request at 80%. Confirm with your servicer how they treat extra payments for PMI purposes.

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