PMI exists to protect the lender, not you
Private mortgage insurance is required on most conventional loans when your down payment is under 20%, and it protects the lender if you default — not you. It’s a real monthly cost that adds up, but federal law guarantees it doesn’t last the life of the loan. The Homeowners Protection Act sets two specific removal points, both based on your loan-to-value (LTV) ratio.
How long does PMI last?
The table below shows how long automatic PMI termination takes on a $400,000 home at a 6.42% 30-year rate, varying only the down payment. A larger down payment starts you closer to the 78% LTV threshold, so it takes less time to reach it through ordinary principal paydown alone.
| Down payment | Starting LTV | Time to automatic PMI termination (78% LTV) |
|---|---|---|
| 3% | 97% | 11 yr 11 mo |
| 5% | 95% | 11 yr 2 mo |
| 7% | 93% | 10 yr 5 mo |
| 10% | 90% | 9 yr 0 mo |
| 15% | 85% | 6 yr 2 mo |
This is purely from scheduled amortization — if your home appreciates, the calculator’s appraisal-based estimate above will typically show a considerably earlier date, since rising home value lowers your real LTV faster than principal paydown alone does.
The two dates that matter
At 80% LTV, based on your original home value, you can proactively request PMI cancellation — your lender has to remove it if you’re current on payments and meet their requirements. At 78% LTV, PMI must be automatically terminated by law, whether you ask or not, as long as you’re current. Both thresholds are calculated from your original amortization schedule, not your current balance in an ad hoc sense — the calculator above finds the exact month each one arrives given your loan’s actual terms.
Understanding each input
Original home price
The purchase price at closing — this is what your scheduled LTV thresholds (78% and 80%) are calculated against, not your home’s current market value.
Down payment
The percentage you put down determines your starting LTV. At 20% or more, PMI typically isn’t required at all on a conventional loan — this calculator is for the sub-20%-down scenario where PMI applies.
Monthly PMI
Your actual PMI dollar amount, found on your mortgage statement or closing disclosure. Used here only to total up how much you’ll have paid by the time it terminates — it doesn’t affect the removal date itself.
Home appreciation
An optional estimate of how fast your home’s value is rising. If your real current value is climbing faster than your original schedule assumed, you may qualify for appraisal-based early removal well before the automatic 78% date.
The faster path: appreciation
Those two dates assume your home’s value stays flat at the original purchase price. If your home has appreciated, your real LTV based on current value is lower than your scheduled LTV based on the original value — which means you might be able to request removal well before the automatic 78% date arrives. This route requires a new appraisal at your own cost to prove the current value, and lenders can decline if your payment history isn’t clean, but in markets with meaningful appreciation, this is often the fastest way to shed PMI.
What to actually do when you hit these dates
The 78% automatic termination should happen without your involvement — but mistakes happen, so it’s worth confirming with your servicer directly rather than assuming. For the 80% request-based cancellation or an appreciation-based early removal, you typically need to submit a written request, and for the appreciation route, pay for a new appraisal. None of this happens automatically before the legal 78% date unless you initiate it.
Using this calculator
If you don’t know your PMI’s exact monthly dollar amount, it’s on your mortgage statement or closing disclosure. The appreciation field is optional but worth filling in if your local market has been rising — it can meaningfully move up your estimated removal date and may be worth the cost of an appraisal to find out for certain.
This article is for educational purposes only and isn't legal, financial, or tax advice. See our Disclaimer for details.
