PMI Removal Calculator
When can you drop PMI?
Earliest you can drop PMI
3yr
Via reappraisal request at 80% current-value LTV. Saves $18,150 vs. waiting for auto-cancel.
Auto-cancel (78% original)
8yr 6mo
lender must drop PMI
Request (80% original)
7yr 6mo
you can ask, by schedule
Request via reappraisal
3yr
Fannie: 75% LTV if 2-5yr loan, 80% if ≥5yr
PMI saved by acting now
$18,150
vs waiting for auto-cancel
LTV over time
Three paths to drop PMI under the Homeowners Protection Act and servicer rules:
1. Automatic at 78% LTV based on the original amortization schedule (not your actual balance). Extra payments do not accelerate this — the lender must drop PMI on a specific date set at origination.
2. Request at 80% LTV scheduled — you can ask once your actual balance hits 80% of original price (extra payments help here). Requires good payment history (no 30-day late in past 12 months, no 60-day late in past 24).
3. Reappraise at lower current LTV — Fannie's servicer rule: 75% LTV if loan is 2–5 years old, 80% if ≥5 years (some servicers stricter). Requires 2-year seasoning, on-time payment history, and a borrower-paid BPO/appraisal ($150–$600). Often the biggest win in appreciating markets.
Refinancing is a fourth path — if rates have dropped and you've appreciated, refinancing to conventional with ≥20% equity drops PMI immediately.