When does PMI go away?
On a conventional loan, the federal Homeowners Protection Act gives you three ways out of private mortgage insurance, all measured against your home's original value (the lower of the purchase price or the appraisal when you bought):
| Rule | When | What you do |
|---|---|---|
| Borrower request | Your balance reaches 80% of original value | Ask your servicer in writing |
| Automatic termination | Scheduled balance reaches 78% of original value | Nothing, if you're current on payments |
| Final termination | Halfway through the loan term (year 15 of a 30-year loan) | Nothing, if you're current on payments |
To request cancellation at 80%, lenders typically require a good payment history, no second mortgage, and proof the home's value hasn't dropped. The difference between 80% and 78% is usually around two years, so asking is worth it.
Drop PMI sooner with a new appraisal
If your home has gained value, Fannie Mae and Freddie Mac loans can often drop PMI based on the current value instead:
- At least 2 years since the loan closed, with a good payment history.
- Balance at or below 75% of current value if it's been 2 to 5 years.
- Balance at or below 80% of current value after 5 years.
You'll usually pay for an appraisal ordered through your servicer. Check with them first: rules differ by investor, and some count only value added by home improvements.
What about FHA loans?
FHA loans carry a mortgage insurance premium (MIP) with different rules. For loans endorsed after June 3, 2013, annual MIP lasts 11 years if your original loan-to-value was 90% or less (at least 10% down), and for the life of the loan if it was above 90%. Extra payments don't end it early. The usual way out is refinancing into a conventional loan once you have 20% equity.
How the calculator works
It builds your original amortization schedule from the loan amount, rate and term, then finds the first payment where the balance falls to 80% and 78% of the original value. Extra payments are applied from next month on. For the appraisal route it compares your projected balance with today's value.
Example
Say you bought a $400,000 home with a $360,000 loan at 6.75% for 30 years, first payment in June 2024, and you pay $150 a month for PMI. Your balance reaches 80% of the original value ($320,000) in July 2032, and PMI would end automatically at 78% ($312,000) in September 2033. Asking at 80% saves 14 payments, or $2,100.
If your home is now worth $440,000, the appraisal route is faster: once the loan is 5 years old (May 2029), your balance will be under 80% of the new value, more than three years before the 80% date on your original schedule.
Frequently asked questions
How do I get rid of PMI?
On a conventional loan you can ask your servicer in writing to cancel PMI once your balance reaches 80% of your home's original value. It ends automatically at 78% of original value, or at the midpoint of the loan term, as long as you're current on payments.
Can I remove PMI if my home value went up?
Often, yes. Fannie Mae and Freddie Mac loans generally allow cancellation based on a new appraisal if the loan is at least 2 years old and the balance is 75% or less of current value (2 to 5 years) or 80% or less (after 5 years). Ask your servicer for their exact requirements.
Do extra payments remove PMI faster?
Yes, if you request cancellation. Extra principal gets you to 80% of original value sooner. Automatic termination at 78% follows your original schedule, so you need to ask.
Can I remove FHA mortgage insurance?
For FHA loans endorsed after June 3, 2013, annual MIP lasts 11 years if you put at least 10% down, and for the life of the loan otherwise. The common way to drop it earlier is refinancing into a conventional loan once you have at least 20% equity.
How much does PMI cost?
It depends on your credit score, down payment and loan size. Your exact monthly PMI is listed on your mortgage statement or Closing Disclosure.
Estimates only. Your servicer makes the final decision and may have additional requirements. PMI rules in this calculator follow the Homeowners Protection Act and common Fannie Mae / Freddie Mac guidelines; FHA rules apply to loans endorsed after June 3, 2013. Not financial advice. Last updated September 29, 2026.