When Does PMI Go Away? How to Remove Private Mortgage Insurance
By Calqpro Editorial Team · April 20, 2026 · 5 min read
PMI (Private Mortgage Insurance) protects the lender — not you — if you default on the loan. Yet you pay for it. On a $350,000 home with 5% down, PMI typically costs $100–$200/month. Knowing exactly when it ends (and how to end it early) is pure money back in your pocket.
The Two PMI Cancellation Thresholds
- 80% LTV — you request it: Under the Homeowners Protection Act, you have the right to request PMI cancellation when your loan balance reaches 80% of the original purchase price. You must have good payment history and may need to prove the home hasn't declined in value.
- 78% LTV — automatic cancellation: Lenders are required by law to automatically cancel PMI when your balance reaches 78% of the original value based on the scheduled amortization — no request needed.
How Long Does PMI Last by Down Payment?
| Down Payment | Starting LTV | Years to 80% LTV |
|---|---|---|
| 3% | 97% | ~11 years |
| 5% | 95% | ~9 years |
| 10% | 90% | ~6 years |
| 15% | 85% | ~3 years |
| 20% | 80% | No PMI required |
Based on 30-year fixed mortgage at 7% with no extra payments.
How to Get Rid of PMI Early
Option 1: Make extra principal payments. Every extra payment reduces your balance faster, accelerating when you hit 80% LTV. Even $100/month extra can shave 1–2 years off PMI.
Option 2: Use home appreciation. If your home has appreciated significantly, you may already be at or below 80% LTV based on current value — even if not on the original purchase price. Request a new appraisal; if it confirms 80% LTV or better, you can request PMI removal. Note: lenders typically require you to have been in the home 2+ years for this.
Option 3: Refinance. If rates have dropped and you have 20% equity, refinancing eliminates PMI entirely. Run the numbers on our refinance calculator to see if the closing costs make it worth it.
FHA Loans: Different Rules
FHA loans have their own mortgage insurance (MIP, not PMI) with different rules. If you put less than 10% down on an FHA loan, MIP stays for the life of the loan — it never goes away. This is a major reason to put 10%+ down on an FHA loan or refinance to a conventional loan once you have 20% equity.
See exactly when your PMI goes away
Use the PMI Calculator →