See your PMI cost, and when it disappears.
Enter your home price, down payment and rate to get your monthly private mortgage insurance, your current loan-to-value, and the exact month PMI can be cancelled at 80% and drops off automatically at 78%.
Your loan
PMI applies only when your down payment is under 20%. Most rates land between 0.3% and 1.5% of the loan per year.
What this means for you
When PMI comes off
Loan balance vs the 80% and 78% lines
PMI milestones
Balance and equity by year
Loan-to-value is measured against the original home price, the same basis your servicer uses for the 80% and 78% rules.
| Year | Loan balance | LTV | Equity | PMI status |
|---|
PMI, explained
What PMI is and why lenders charge it
Private mortgage insurance protects the lender, not you, when your down payment is less than 20% of the home price. Because a smaller down payment means a higher loan-to-value ratio, the lender carries more risk, and PMI covers part of their loss if the loan defaults. The cost is added to your monthly payment and typically runs from about 0.3% to 1.5% of the loan amount per year, depending on your credit score, loan type, and how much you put down.
PMI is not permanent. It exists only to bridge the gap until you have built enough equity, and federal law gives you clear points at which it can and must come off.
The 80% and 78% rules under the Homeowners Protection Act
The Homeowners Protection Act sets two milestones based on your original amortization schedule. At 80% loan-to-value, meaning your loan balance has fallen to 80% of the original home price, you have the right to request that PMI be cancelled in writing. At 78% loan-to-value, the servicer must automatically terminate PMI, as long as you are current on payments. This calculator walks your amortization schedule month by month to find exactly when each point is reached.
Ways to reach the cancellation point faster
Extra principal payments push your balance down ahead of schedule, so you hit 80% sooner. A new appraisal can also help: if your home has appreciated, many servicers let you cancel PMI once current value puts you at 20% equity, even if the original schedule has not caught up. Refinancing out of an FHA loan into a conventional loan is another common route, since FHA mortgage insurance often lasts the life of the loan while conventional PMI ends at 78%.
Common questions
When does PMI automatically stop?
By law, your servicer must cancel PMI automatically once your loan balance reaches 78% of the original home value on the original amortization schedule, provided you are current on payments. You do not have to request it at that point.
Can I cancel PMI before it drops off on its own?
Yes. Once you reach 80% loan-to-value you can send your servicer a written request to cancel PMI. You typically need a good payment history, no second liens, and sometimes an appraisal to confirm value.
How do I avoid PMI completely?
Put down 20% or more, and there is no PMI at all. Some buyers use a piggyback second loan or a lender-paid PMI structure instead, though those trade the monthly premium for a higher rate or extra debt.
Is PMI the same as homeowners insurance?
No. Homeowners insurance protects your property against damage and loss and stays with you. PMI protects the lender against default and ends once you have enough equity. They are separate line items.
Estimates for planning only. Your actual PMI rate, cancellation rules and timing depend on your loan type, servicer, credit and payment history. FHA mortgage insurance follows different rules than conventional PMI. Confirm every figure with your lender.