What this calculator does
Private mortgage insurance (PMI) protects the lender when a conventional loan is more than 80% of the home's value, and you pay for it, usually every month. Federal law sets when it can and must end. Enter your loan, the home's original value and your PMI cost, and the calculator shows the month you can ask to cancel PMI, the month it must end on its own, and how much PMI you pay until each date.
The three dates
- 80% of the original value: you can ask your servicer in writing to cancel PMI when your balance reaches 80% of the home's original value, on the regular schedule or sooner with extra payments. You must be current on payments, have a good payment history, have no second loan on the home, and show that its value has not dropped, often with an appraisal.
- 78% of the original value: the servicer must end PMI on the date your balance is scheduled to reach 78% of the original value, if you are current. Extra payments do not move this date.
- The midpoint: PMI must end the month after you reach the halfway point of the loan's schedule, for example after 15 years of a 30-year loan, if you are current.
The original value is generally the lower of the sale price and the appraised value when you bought the home. These rules cover loans for a single-family main home made on or after July 29, 1999; FHA and VA loans follow other rules (CFPB).
How it is worked out
The calculator builds the standard monthly payment schedule for your loan and finds the first payment after which the balance is at or below 80% and 78% of the original value. Example: a $360,000 loan on a $400,000 home at 6.5% for 30 years starts at 90% of the value. The balance reaches 80% after payment 95, about 8 years in, and 78% after payment 109. With $300 extra a month, it reaches 80% after payment 56.
Frequently asked questions
When can I stop paying PMI?
You can ask when your balance reaches 80% of the home's original value. It must end automatically when the balance is scheduled to reach 78%, or at the midpoint of the loan, if you are current on payments.
Can extra payments remove PMI sooner?
Yes. If extra payments bring your balance to 80% of the original value early, you can ask to cancel PMI then. The automatic 78% date stays on the original schedule.
Can a higher home value remove PMI?
The federal rules use the original value. Some lenders and investors, such as Fannie Mae and Freddie Mac, allow cancellation based on a new appraisal under their own guidelines. Ask your servicer.
Does this apply to FHA loans?
No. FHA mortgage insurance premiums and VA funding fees follow different rules.
Is my information saved?
No. The numbers stay on this page.