PMI Removal Calculator
Find out your current loan-to-value (LTV) ratio and determine whether you're eligible to cancel private mortgage insurance (PMI). Essential for homeowners who want to stop paying unnecessary insurance premiums.
About this calculator
Private mortgage insurance (PMI) protects the lender — not you — if you default, and it's typically required when your down payment is less than 20%. The key metric for PMI removal is your loan-to-value ratio: LTV = (Current Loan Balance / Current Home Value) × 100. Under the Homeowners Protection Act, lenders must automatically cancel PMI when the LTV reaches 78% based on the original amortization schedule. However, you can request cancellation earlier once your LTV drops to 80%, either through scheduled payments or home value appreciation. This calculator computes your current LTV so you know exactly where you stand. If your home has appreciated, the updated value can push your LTV below the 80% threshold even if your payments alone haven't gotten you there yet.
How to use
Suppose your original loan was $320,000, your current balance is $246,000, and your home has appreciated to $310,000. LTV = ($246,000 / $310,000) × 100 = 79.4%. Since 79.4% is below 80%, you may be eligible to request PMI cancellation today. You would typically need a formal appraisal to confirm the home value, then submit a written request to your servicer. Eliminating PMI could save you $100–$200 per month depending on your original loan amount and PMI rate.
Frequently asked questions
How do you get PMI removed from your mortgage early?
To remove PMI before the automatic cancellation point, you need to submit a written request to your loan servicer once your LTV reaches 80% or below. Most lenders will require a current appraisal — at your expense — to confirm the home's value, especially if you're relying on appreciation rather than just payments. You must also have a good payment history with no 30-day late payments in the past 12 months. Once approved, the servicer cancels PMI and your monthly payment drops immediately.
What LTV ratio is required to cancel PMI on a conventional mortgage?
For conventional loans, lenders are required by law to automatically cancel PMI when the LTV reaches 78% based on the original purchase price and scheduled amortization — regardless of any appreciation. You can proactively request cancellation at 80% LTV, which can come sooner if your home has risen in value. FHA loans follow different rules: mortgage insurance premiums (MIP) cannot be removed simply by reaching 80% LTV on loans originated after June 2013 — those typically require a refinance. Always check with your specific servicer for their exact requirements.
How much money can you save per month by removing PMI?
PMI typically costs between 0.2% and 2% of the original loan amount annually, depending on your credit score, loan size, and down payment. On a $300,000 loan with a 0.5% PMI rate, that's $1,500 per year or $125 per month in pure premium. On a larger loan or with a lower credit score, the cost can exceed $200–$300 per month. Removing PMI as soon as you're eligible can save tens of thousands of dollars over the remaining life of the loan, making it one of the most impactful actions an eligible homeowner can take.