Common questions
What is the difference between the 80% and 78% LTV points?
They are two different rights under the Homeowners Protection Act, and they are not the same date. At 80% loan-to-value of the original value (20% equity) you can request cancellation in writing, with a good payment history, but you have to ask. At 78% LTV (22% equity) the servicer must terminate PMI automatically, whether you ask or not. Because requesting at 80% happens sooner, the months between the two are pure wasted premium if you do nothing; this calculator shows both dates and the dollars in that gap.
What value is 80% and 78% measured against?
The original value (the lower of the purchase price or the appraised value at closing), not today's market value. That is fixed for the life of the automatic rules. A separate route, a new appraisal on current value, is the only way appreciation counts.
Is there a backstop if my loan pays down slowly?
Yes. Even if you never reach 78% by schedule, the Act requires final termination at the midpoint of the amortization period (year 15 of a 30-year loan), regardless of LTV. On a normal amortizing loan you hit 78% well before that, but the midpoint is the guaranteed backstop, and the calculator shows it.
Can home appreciation get PMI removed sooner?
Not through the automatic rules, which use original value, but Fannie Mae and Freddie Mac servicing rules let you cancel on a new appraisal of the current value: seasoned two to five years you need the balance at 75% or less of the new value, and after five years 80% or less. Before two years, appreciation alone does not qualify. In a rising market this path is often years faster and costs one appraisal fee; the third path above estimates the date from your appreciation assumption.
How is FHA mortgage insurance different?
FHA MIP is not conventional PMI and does not follow the 78% rule. With less than 10% down, MIP lasts the life of the loan; the only exit is refinancing into a conventional loan once you have about 20% equity. With 10% or more down, MIP ends after 11 years. Switch the loan-type toggle to FHA to model both cases.
Can I enter PMI as a percentage or a dollar amount?
Either. Toggle the premium between an annual rate (a percentage of your original loan) and a flat monthly dollar figure. The conversion is monthly = rate × loan ÷ 12, shown right under the field.
Do extra payments speed it up?
Directly: every extra principal dollar moves the balance toward the threshold sooner. Enter extra as a steady monthly amount or as a one-time lump sum on a chosen date, and use the sensitivity table and the request-date accelerator to see how much sooner PMI ends. The target solver finds the smallest steady extra that reaches 80% by your chosen month.
