Is FHA mortgage insurance the same as conventional PMI?

No. FHA loans use mortgage insurance premiums (MIP) with different rules and durations. We model conventional PMI here.

What can I do to remove PMI faster?

Pay extra principal, request a new appraisal (servicer rules apply), or refinance once your equity reaches the threshold.

When does PMI go away automatically?

On a conventional loan, the servicer is generally required to terminate PMI when your scheduled balance reaches 78% of the original value, provided you're current on payments. Lender-paid PMI doesn't auto-terminate because it isn't a separate premium.

Can I cancel PMI before 80% LTV?

In some cases, yes — if a new appraisal shows current LTV at or below 80% (or 75% on newer ownership), many servicers will cancel based on the appraisal. Rules vary; ask your servicer in writing.

Does a higher down payment always avoid PMI?

On a conventional loan, putting at least 20% down generally avoids PMI from day one. Some loan programs structure the cost differently (lender-paid PMI, piggyback loans), so check the trade-off carefully.

PMI Calculator and Removal Timeline

See an estimate of your monthly PMI payment and when your loan balance is projected to reach the 80% and 78% LTV milestones.

PMI Removal Estimate

Generated … · Assumption set 2026-04-30

Estimated monthly PMI

$190.00/mo

Reaches 80% LTV

Oct 1, 2036

month 124

Reaches 78% LTV

Sep 1, 2037

month 135

Months paying PMI

135

Estimated total PMI

$25,650.00

80% LTV is when many borrowers can request cancellation; 78% is the typical automatic-termination milestone for conventional loans. Your servicer's rules and timing may differ.

PMI removal is an estimate
Cancellation depends on your servicer, payment history, occupancy, liens, and applicable law. Confirm requirements with your loan servicer.

Assumptions used

Assumption set 2026-04-30

Home price (original value): $400,000user input
Loan amount: $380,000calculated
Annual interest rate: 6.50%user input
Loan term: 30 yearsuser input
PMI rate: 0.60%user input

How this calculator works

Conventional loans typically charge private mortgage insurance (PMI) when your loan-to-value (LTV) is above 80%. Many borrowers can request cancellation around 80% LTV based on the original value, and the loan usually auto-terminates PMI around 78% LTV. Actual cancellation depends on your servicer, payment history, and applicable law — these numbers are estimates, not a guarantee from your lender.

Reviewed for calculation accuracy and clarity by the Mortgage Well Calculation Review Team · June 8, 2026

When to use this

You put less than 20% down and want to plan when PMI will fall off.
You're deciding whether extra payments would shorten your PMI timeline.
You want to see how home appreciation might let you cancel PMI early.

Methodology

We run an amortization schedule for your loan and find the first month where the remaining balance crosses 80% and 78% of the original home value. Monthly PMI is computed from your loan amount and your PMI rate (or a flat dollar amount).

monthly_PMI = (loan_amount * pmi_annual_rate) / 12
80% milestone = first month where balance ≤ 0.80 * original_home_value
78% milestone = first month where balance ≤ 0.78 * original_home_value

Assumptions

Conventional loan rules — FHA MIP follows different durations and is modeled separately.
Cancellation is calculated against original value; many servicers also accept a new appraisal.
Payment history, occupancy, and lien status affect actual cancellation eligibility.
High-LTV starts (above 90%) typically take longer to reach the cancellation thresholds through scheduled amortization alone.

PMI removal — the three common paths

For conventional loans, federal law (the Homeowners Protection Act) and servicer practices generally create three paths to PMI removal:

80% LTV — borrower-requested cancellation. Once your scheduled balance reaches 80% of the original value, you can request that the servicer cancel PMI. You typically need to be current on payments, have a clean recent payment history, and meet your servicer's other conditions.
78% LTV — automatic termination. When your scheduled balance reaches 78% of the original value, the servicer is generally required to terminate PMI automatically — provided you're current.
Midpoint of the loan term. If neither LTV threshold is reached on schedule, PMI is generally required to be cancelled at the loan term's midpoint.

Original value vs. current appraisal

The 80% and 78% thresholds in the law use original value — the lower of purchase price or original appraisal — not your current market value. If your home has appreciated, many servicers will let you cancel earlier based on a new appraisal showing current LTV at or below 80% (or 75% if you've owned the home less than two to five years). Rules vary by servicer; ask in writing.

High-LTV starts take longer

If you put down 5% (95% LTV) or 3% (97% LTV), reaching 78% LTV through scheduled amortization alone can take 8–13 years on a typical 30-year loan. Extra principal payments materially shorten that timeline — often by years. Use the Extra Payment calculator alongside this one to see the effect.

Loan-type and servicer caveats

FHA loans use MIP, not PMI. Mortgage insurance premium follows different rules — most FHA borrowers carry MIP for the life of the loan unless they refinance into a conventional loan.
VA loans have a one-time funding fee instead of monthly insurance.
USDA loans have an annual fee that behaves like mortgage insurance but follows USDA-specific rules.
Lender-paid PMI isn't cancellable — it's rolled into a slightly higher rate for the life of the loan.

Worked example

A $380,000 loan on a $400,000 home (95% LTV) at 6.5% over 30 years might pay PMI for roughly the first 8 years before reaching 78% LTV through scheduled amortization alone. An extra $200/month accelerates the milestone, often by 1–2 years; check your specific scenario in the calculator.

Frequently asked

Is FHA mortgage insurance the same as conventional PMI?: No. FHA loans use mortgage insurance premiums (MIP) with different rules and durations. We model conventional PMI here.
What can I do to remove PMI faster?: Pay extra principal, request a new appraisal (servicer rules apply), or refinance once your equity reaches the threshold.
When does PMI go away automatically?: On a conventional loan, the servicer is generally required to terminate PMI when your scheduled balance reaches 78% of the original value, provided you're current on payments. Lender-paid PMI doesn't auto-terminate because it isn't a separate premium.
Can I cancel PMI before 80% LTV?: In some cases, yes — if a new appraisal shows current LTV at or below 80% (or 75% on newer ownership), many servicers will cancel based on the appraisal. Rules vary; ask your servicer in writing.
Does a higher down payment always avoid PMI?: On a conventional loan, putting at least 20% down generally avoids PMI from day one. Some loan programs structure the cost differently (lender-paid PMI, piggyback loans), so check the trade-off carefully.

Sources and references

Helpful consumer references used to explain assumptions on this page. These are educational pointers, not regulatory endorsement.

CFPB — PMI cancellation overview — consumer overview of how PMI works and how to request cancellation under federal law
HUD — FHA mortgage insurance — FHA-specific MIP rules differ from conventional PMI
Fannie Mae / Freddie Mac — homeowner education — general consumer references on conventional mortgage insurance and cancellation

Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.