Your PMI calculator result can answer two different questions: how much private mortgage insurance could cost each month and how long you might have to pay it.
Those answers use different calculations. Your estimated monthly PMI depends on your loan amount and the PMI rate entered. Your standard cancellation timeline is based primarily on your mortgage balance compared with the home's original value.
PMI Calculator Basics
| Calculator Result Or Input |
What It Means |
| Home Value |
The property value used to calculate your starting loan-to-value ratio |
| Loan Amount |
The amount financed with the first mortgage |
| Loan-To-Value Ratio |
The first mortgage balance divided by the applicable property value |
| PMI Rate |
The annual mortgage insurance percentage used to estimate your PMI cost |
| Estimated Monthly PMI |
The estimated monthly mortgage insurance charge based on the PMI rate entered |
| 80% Request Date |
The estimated date your scheduled balance reaches 80% of the home's original value, when you may be able to request cancellation if the other requirements are met |
| 78% Automatic Termination Date |
The estimated scheduled date PMI generally must terminate automatically if the mortgage is current and the applicable federal requirements are met |
How To Read Your PMI Calculator Results
Start with the monthly PMI estimate if you're comparing the cost of buying with less than 20% down. Then look at the 80% and 78% dates separately.
The 80% date represents the standard point when you may be able to request PMI cancellation. The 78% date represents the later point when PMI generally terminates automatically if you're current on the mortgage.
Those dates should not be treated as interchangeable. The CFPB explains that borrower-requested cancellation and automatic termination follow different requirements under the Homeowners Protection Act.
How To Calculate Your Monthly PMI Cost
A simple PMI estimate starts with the outstanding mortgage amount and the annual PMI rate used for the calculation:
Estimated monthly PMI = loan amount × annual PMI rate ÷ 12
Suppose you buy a $400,000 home with 10% down. Your starting loan amount would be $360,000. If you use a hypothetical 0.50% annual PMI rate:
- Annual PMI estimate: $360,000 × 0.005 = $1,800
- Monthly PMI estimate: $1,800 ÷ 12 = $150
The $150 is an estimate based on the assumed PMI rate. It is not a universal charge for a $360,000 mortgage.
What Affects Your Actual PMI Rate?
There is no single federal PMI rate or credit-score table that applies to every conventional loan. Your actual mortgage insurance pricing depends on the mortgage and the insurer's pricing.
Credit profile and loan-to-value ratio can affect the premium, along with other loan characteristics. Use the PMI rate from a mortgage quote when you have one. If you're still planning, change the PMI rate in the calculator to see how different premiums affect the monthly cost.
When Can You Request PMI Cancellation?
For many conventional mortgages covered by the Homeowners Protection Act, you can request cancellation when the principal balance is scheduled to reach 80% of the home's original value.
You may also reach that point earlier by making additional principal payments. If the actual principal balance falls to 80% of the original value before the scheduled date, you can generally make the request at that point.
Reaching 80% does not guarantee immediate cancellation. Under the federal rules, the servicer can require that:
- You submit the cancellation request in writing.
- You have a good payment history.
- You are current on the mortgage.
- You certify that the home does not have a junior lien, such as a second mortgage.
- You provide evidence, when required, that the property's value has not fallen below its original value.
For a home purchase, original value generally means the lower of the purchase price or appraised value when you bought the home. For a refinance, it generally means the appraised value used when the refinance closed.
When Does PMI Automatically Terminate?
PMI generally must terminate automatically when the mortgage balance is scheduled to reach 78% of the home's original value, provided you're current on the mortgage.
The word scheduled is important. Automatic termination is based on the amortization schedule rather than the actual balance on that date.
Extra principal payments can move your borrower-requested 80% cancellation opportunity forward. They do not move the statutory 78% automatic-termination date forward.
If you're not current when the scheduled 78% date arrives, automatic termination generally occurs after you bring the loan current.
The Midpoint Termination Rule
Federal law also provides a final termination point based on the midpoint of the mortgage's original amortization period.
For a standard 30-year mortgage, the midpoint is reached after 15 years. This rule is more relevant to mortgages where the scheduled balance does not reach 78% before the midpoint, such as certain loans with interest-only periods, principal forbearance or balloon structures.
You generally must be current for PMI to terminate under the midpoint rule.
Can A New Appraisal Help You Remove PMI Earlier?
Potentially, but there are two different rules that are easy to confuse.
Under the standard Homeowners Protection Act cancellation process, a higher current appraisal does not replace the home's original value when calculating the 80% cancellation date. A servicer may instead use a valuation to confirm that the property has not declined below its original value.
Separate investor and servicer rules can allow PMI removal based directly on the home's current value. That creates a possible path for homeowners whose property has appreciated or who have completed significant improvements.
Current-Value PMI Removal On Fannie Mae Loans
Fannie Mae, one of the government-sponsored enterprises that purchases mortgages from lenders and sets many conventional servicing rules, allows borrower-requested mortgage insurance termination based on current value for eligible loans.
For a one-unit principal residence, Fannie Mae's current servicing rules generally require:
- An LTV of 75% or less when the mortgage is between two and five years old.
- An LTV of 80% or less when the mortgage is more than five years old.
- An acceptable payment record and a qualifying property valuation.
Fannie Mae can waive its minimum two-year seasoning requirement when qualifying improvements made by the homeowner increased the property's value. In that situation, the LTV generally must be 80% or less.
Freddie Mac, the other major government-sponsored enterprise, also has separate borrower-requested mortgage insurance cancellation requirements.
These investor standards are different from the basic federal 80% and 78% rules. Before paying for an appraisal or other valuation, ask your mortgage servicer which investor owns your loan, whether current-value cancellation is available and what valuation process the servicer requires.
How LTV Affects PMI Removal
Loan-to-value ratio, or LTV, compares your first mortgage balance with the property value used for the calculation.
For example, a $240,000 first mortgage on a $300,000 property equals 80% LTV:
$240,000 ÷ $300,000 = 80%
The property value used in that equation depends on the PMI-removal path. The standard federal cancellation and automatic-termination rules use the home's original value. A permitted current-value cancellation request uses a qualifying current valuation instead.
LTV vs. CLTV
Combined loan-to-value ratio, or CLTV, also counts other loans secured by the property, such as a home equity loan or home equity line of credit.
That is different from the first-mortgage LTV used to calculate the standard PMI thresholds. However, a junior lien can still affect whether you qualify for borrower-requested PMI cancellation.
The CLTV calculator can show how a first mortgage and additional home-secured debt combine relative to the property's value.
Can Home Appreciation Get Rid Of PMI?
Home appreciation can improve your current LTV without reducing the mortgage balance. If your home is now worth substantially more than it was when you bought it, investor-specific current-value rules may allow you to request PMI removal earlier than the standard amortization schedule would.
Appreciation alone does not automatically cancel PMI. Your servicer may require a specific valuation, and seasoning, payment-history and LTV requirements can apply.
You can use the home equity calculator to estimate how your current mortgage balance compares with an updated home value. Treat that result as a planning estimate until your servicer confirms the valuation it will accept for PMI cancellation.
Ways To Reach PMI Removal Sooner
Pay Additional Principal
Extra principal payments reduce your mortgage balance faster. Once the actual balance reaches 80% of the home's original value, you may be able to request PMI cancellation if you meet the other requirements.
This can move the request date forward, but it does not move the statutory 78% automatic-termination date.
Use A Current-Value Cancellation Option
Appreciation or substantial improvements may create enough equity to meet your loan investor's current-value requirements before your scheduled balance reaches 80% of the original value.
Contact the servicer before ordering your own appraisal. The servicer or investor may require a specific appraisal, broker price opinion or other valuation process.
Refinance The Mortgage
A refinance replaces the existing mortgage with a new loan. If the new conventional mortgage has a sufficiently low LTV, it may not require PMI.
Removing PMI is only one part of the calculation. Compare the new interest rate, closing costs, loan term and total payment with the mortgage you already have. Refinancing to remove PMI makes more sense when the overall savings justify the cost of replacing the loan.
PMI vs. FHA Mortgage Insurance
PMI applies to conventional mortgages. FHA loans use mortgage insurance premiums, or MIP, under a different set of rules.
| Feature |
Conventional PMI |
FHA MIP |
| Loan Type |
Conventional mortgage |
FHA loan |
| 80% Request Rule |
Available for many covered mortgages when requirements are met |
Does not use the conventional PMI 80% cancellation rule |
| 78% Automatic Termination Rule |
Applies to many covered conventional mortgages when requirements are met |
Does not use the conventional PMI 78% termination rule |
| Removal Timing |
Depends on federal cancellation rules plus applicable investor and servicer requirements |
Depends primarily on the FHA rules applying to the loan, including the original LTV and case-number date |
Reaching 20% equity therefore does not automatically produce the same result on an FHA mortgage. The FHA loan calculator can show how FHA mortgage insurance affects an FHA payment.
What A PMI Calculator Cannot Tell You
A PMI calculator can estimate cost, LTV and an amortization-based cancellation timeline. It cannot determine whether your servicer will approve a specific cancellation request.
Your actual result can depend on the mortgage investor, payment history, liens on the property, the valuation method required by your servicer and the type of mortgage insurance attached to the loan.
The calculator also cannot know your actual PMI premium unless you enter the rate that applies to your mortgage. Use the estimate for scenario planning and confirm the removal process with your servicer before relying on a projected date.
The Bottom Line
A PMI calculator is useful for both sides of the mortgage-insurance question: what PMI could cost each month and when you may stop paying it.
Keep the 80% and 78% milestones separate. The 80% point is generally when you can request cancellation under the standard original-value rules if you meet the other requirements. The 78% point generally triggers automatic termination based on the scheduled amortization of a current mortgage.
If your home has appreciated substantially or you've made major improvements, ask your servicer whether your loan also qualifies for PMI cancellation based on current value. Those requirements can differ from the federal original-value rules.
Frequently Asked Questions
How Much Does PMI Cost Per Month?
Your monthly PMI depends on the premium that applies to your mortgage and the amount being insured. A simple estimate multiplies the loan amount by an assumed annual PMI rate and divides by 12. Your actual mortgage insurance pricing can differ from the calculator estimate.
At What LTV Can I Request PMI Removal?
For many conventional mortgages covered by the Homeowners Protection Act, you can request PMI cancellation when the loan balance is scheduled to reach 80% of the home's original value. You can also request it sooner if extra principal payments reduce the actual balance to 80% and you meet the other cancellation requirements.
Does PMI Automatically Go Away At 78% LTV?
PMI generally terminates automatically on the date your mortgage balance is scheduled to reach 78% of the home's original value if you're current on the loan. The automatic termination date is based on the applicable amortization schedule rather than simply checking your actual balance or current home value.
Can An Appraisal Remove PMI?
An appraisal by itself does not cancel PMI. Under the standard federal cancellation process, a valuation may be used to verify that the home's value has not declined. Some Fannie Mae, Freddie Mac or other investor rules also permit cancellation based on current value when you meet their LTV, seasoning, payment-history and valuation requirements.
Can Home Appreciation Help Me Remove PMI?
It can if your loan's investor and servicer permit PMI cancellation based on current property value. Appreciation does not change the standard Homeowners Protection Act calculation, which uses original value for the 80% request and 78% automatic-termination thresholds.
Can I Pay Extra Principal To Remove PMI Faster?
Yes. Additional principal payments can bring your actual balance to 80% of the home's original value sooner, potentially allowing you to request PMI cancellation ahead of the scheduled 80% date. You still need to meet the other applicable requirements.
Is PMI The Same As FHA Mortgage Insurance?
No. PMI applies to conventional mortgages. FHA loans use FHA mortgage insurance premiums and follow different duration and removal rules. The conventional 80% request and 78% automatic-termination rules do not apply to FHA MIP.
Should I Refinance Just To Remove PMI?
Not necessarily. Refinancing can remove PMI if the replacement mortgage does not require it, but a refinance can also change your interest rate, loan term and closing costs. Compare the remaining cost of your existing mortgage with the full cost of the proposed new loan before deciding.
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