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When can you drop PMI?
PMI protects your lender, not you. US law sets two exit dates — 80% LTV by
request, 78% automatically — and home appreciation can unlock a third, earlier one.
Find all three for your loan.
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The three exits from PMI
US conventional loans with under 20% down carry private mortgage insurance — typically
$100–$400/month that protects the lender, not you. The Homeowners Protection Act defines two
scheduled exits: you may request cancellation at 80% loan-to-value against the home's
original value, and the lender must terminate it automatically at 78%.
The third exit is the one few borrowers use: if your home has appreciated, many
servicers allow removal at 80% of current appraised value (some require 75%), usually
after two years of payments. In a rising market this beats the amortization schedule by years
— and every skipped month is your PMI payment kept. The green dashed line on the chart is
your LTV measured against current value; where it crosses 80% is your shortcut.
Frequently asked questions
When can I request PMI cancellation?
Under the US Homeowners Protection Act, you can request cancellation in writing once your balance reaches 80% of the home's original value, if you're current on payments. The lender may require proof the value hasn't declined.
When does PMI end automatically?
The lender must terminate PMI automatically when your balance reaches 78% of original value (or at the loan's midpoint, whichever comes first), provided you're current.
Can home appreciation remove PMI sooner?
Often, yes. Many lenders allow removal at 75–80% LTV based on a new appraisal of current value, typically after a 2–5 year seasoning period. If your market has risen, this can beat the schedule by years — the calculator shows your appreciation date above.
Is paying for an appraisal worth it?
Compare the appraisal cost (often $400–$700) against your monthly PMI times the months you'd skip. The calculator's savings figure makes this comparison directly.
Does this apply to FHA loans?
No — FHA loans carry MIP, not PMI, with different rules: for most FHA loans since 2013 with under 10% down, MIP lasts the life of the loan unless you refinance to conventional.