PMI Removal Calculator
Calculate when you can remove private mortgage insurance (PMI) based on payments and home appreciation
About this calculator
The PMI Removal Calculator helps homeowners determine when they can eliminate private mortgage insurance payments by analyzing loan balance reduction and property value appreciation. PMI is typically required when your down payment is less than 20% of the home's value, but can be removed once you reach 20% equity through payments or appreciation. This calculator estimates your timeline to reach that threshold, potentially saving you hundreds of dollars monthly in unnecessary insurance premiums.
How to use
Enter your current loan balance, original home value, monthly payment amount, and expected annual appreciation rate. The calculator will project when your loan-to-value ratio drops to 80%, indicating when you can request PMI removal from your lender.
Frequently asked questions
When can I remove PMI from my mortgage?
You can typically remove PMI when your loan balance reaches 80% of your home's current value, either through payments or appreciation.
Do I need an appraisal to remove PMI?
Most lenders require a professional appraisal to verify current home value before approving PMI removal, especially if relying on appreciation.
Does PMI automatically cancel at 78% LTV?
Yes, federal law requires automatic PMI cancellation when your loan balance reaches 78% of the original purchase price through scheduled payments.