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Two statutory thresholds end PMI, and they fall on different dates. This finds both.

The value when the loan closed, not today. Both thresholds use this.
The original loan, before any payments.
On the mortgage itself.
30 years is 360.
Of the original loan amount. On your closing disclosure, usually 0.3% to 1.5%.

PMI each month

$158.33

Starting at 95% loan to value

Reaches 80% (may request)
10 years, 4 months
Reaches 78% (automatic)
11 years, 3 months
Total PMI paid to 78%
$21,374.55

Both thresholds are measured against the original home value and the original amortisation schedule, as the Homeowners Protection Act requires. Market appreciation does not move them.

What these numbers mean

PMI protects the lender, not you. It exists because you borrowed more than 80 percent of the home's value, and it stops once the loan has fallen far enough relative to that original value.

The two dates are not the same thing. At 80 percent you may request cancellation in writing, and the servicer may require you to be current on payments and may require an appraisal at your expense. At 78 percent the servicer must terminate it automatically, with no request needed, provided you are current.

Requesting at 80 percent typically ends the premium about a year earlier than waiting, which is the difference between the two figures above. It is a letter, and most people do not send it.

How this is calculated

  • The monthly premium is the annual PMI rate applied to the original loan amount, divided by 12. It does not fall as the balance falls.
  • The loan is amortised month by month at the entered rate and term, and each month's closing balance is compared against the original home value.
  • The first month the ratio reaches 80 percent is the request date; the first month it reaches 78 percent is the automatic termination date.

Both use the original value. That is the statutory basis, not a simplification: the Homeowners Protection Act defines the thresholds against the original value and the amortisation schedule in effect at closing.

See the Consumer Financial Protection Bureau's guidance and the Homeowners Protection Act of 1998, 12 USC 4901 and following.

What this does not account for

  • FHA, VA and USDA loans. This is private mortgage insurance on a conventional loan only. FHA premiums follow different rules and often cannot be cancelled at all.
  • Lender-paid PMI. Where the premium is built into a higher interest rate instead of a separate line, there is nothing to cancel.
  • Single-premium PMI paid upfront at closing.
  • Extra payments. The schedule here is the original one. Paying ahead reaches 80 percent sooner in real time, but automatic termination at 78 percent is tied to the originally scheduled date.
  • High-risk loan rules. Loans classified as high risk at origination follow a different, later termination schedule under the same Act.
  • Everything except principal and interest. Property tax, insurance and HOA dues are excluded.

Questions

When does PMI come off automatically?
At 78 percent loan to value, based on the original value of the home and the original amortisation schedule. That is automatic termination under the Homeowners Protection Act and the servicer must do it without being asked, provided you are current on payments. At 80 percent you may request cancellation, but it is a request and the servicer can require a good payment history and sometimes an appraisal.
My house has gone up in value. Does that remove PMI?
Not automatically. Both statutory thresholds are calculated from the original value and the original schedule, so market appreciation does not trigger them. Some servicers will cancel early based on a new appraisal you pay for, but that is their policy rather than your right under the Act.
Does this apply to an FHA loan?
No. This page covers private mortgage insurance on conventional loans. FHA loans carry a mortgage insurance premium under different rules, and on most FHA loans originated since 2013 with a low down payment it lasts for the life of the loan and cannot be cancelled. Refinancing into a conventional loan is the usual route out, which is a different calculation.
What rate should I enter?
PMI typically runs between about 0.3 and 1.5 percent of the original loan amount a year, depending on your credit score and down payment. It is on your loan estimate and your closing disclosure. If you do not have the figure, 0.5 percent is a reasonable middle for a good credit score.
Can extra payments end it sooner?
Yes. The thresholds are based on the original schedule, but paying down principal faster reaches them sooner in real time. The automatic 78 percent termination is tied to the date the balance was scheduled to reach it, so check with your servicer: some apply it on the scheduled date regardless, and a written cancellation request at 80 percent is usually the faster route.

How this works

Figures and sources on this page last checked September 4, 2026.