● Money & small business
When does PMI come off? Payment-by-payment dates for 3% to 15% down, and what extra payments change
Private mortgage insurance (PMI) on a conventional loan doesn't last forever. Under the US Homeowners Protection Act there are three ways it ends: you can ask to cancel it once your balance reaches 80% of the home's original value, it ends automatically when the balance is scheduled to reach 78%, and it ends at the loan's midpoint at the latest. Many lenders also drop it after a new appraisal shows enough equity. Here's when each happens, worked out payment by payment. Run your own loan in the PMI removal calculator.
When PMI comes off, by down payment and rate
A $350,000 home, 30-year fixed loan, no extra payments. PMI is shown at an example rate of 0.5% of the loan a year; your rate depends on your credit score and down payment.
| Down payment | Rate | Cancel on request (80%) | Automatic (78%) | PMI a month | PMI paid until request |
|---|---|---|---|---|---|
| 3% ($339,500 loan) | 6% | payment 127 | payment 138 | $141.46 | $17,965 |
| 6.5% | payment 133 | payment 144 | $141.46 | $18,814 | |
| 7% | payment 140 | payment 151 | $141.46 | $19,804 | |
| 5% ($332,500 loan) | 6% | payment 118 | payment 129 | $138.54 | $16,348 |
| 6.5% | payment 124 | payment 135 | $138.54 | $17,179 | |
| 7% | payment 130 | payment 142 | $138.54 | $18,010 | |
| 10% ($315,000 loan) | 6% | payment 89 | payment 103 | $131.25 | $11,681 |
| 6.5% | payment 95 | payment 109 | $131.25 | $12,469 | |
| 7% | payment 101 | payment 115 | $131.25 | $13,256 | |
| 15% ($297,500 loan) | 6% | payment 52 | payment 70 | $123.96 | $6,446 |
| 6.5% | payment 56 | payment 75 | $123.96 | $6,942 | |
| 7% | payment 61 | payment 80 | $123.96 | $7,562 |
With 5% down at 6.5%, that's a little over 10 years before you can ask for cancellation, and 11 more payments until PMI ends by itself. Asking at 80% instead of waiting saves those 11 payments: $1,524 here. None of these loans reach the midpoint rule (payment 181) first.
What extra payments change
Extra principal brings the 80% request date closer, because that date is based on your actual balance. The automatic 78% date is based on the original schedule, so extra payments don't move it. 5% down, 6.5%:
| Extra each month | Cancel on request | PMI paid until then | PMI saved |
|---|---|---|---|
| $0 | payment 124 | $17,179 | – |
| $100 | payment 100 | $13,854 | $3,325 |
| $200 | payment 84 | $11,637 | $5,542 |
| $500 | payment 57 | $7,897 | $9,282 |
If you pay extra, you have to ask: the automatic date stays at payment 135.
The new-appraisal route
If your home has gained value, many lenders will drop PMI when the balance is at or below 75% or 80% of a new appraisal, often only after 2 to 5 years of payments. Same 5%-down loan at 6.5%, no extra payments, with the home's value growing each year from $350,000:
| Home value growth | Balance ≤ 80% of value | Balance ≤ 75% of value |
|---|---|---|
| 0% a year | payment 124 | payment 152 |
| 3% a year | payment 49 | payment 66 |
| 5% a year | payment 34 | payment 47 |
At 3% a year, the appraisal route could come about 6 years before the 80% request date. The appraisal usually costs a few hundred dollars, and the lender decides whether the value counts, so check its rules before ordering one.
Things to know
- "Original value" is the lower of the price and the appraisal when you bought. The 78% and 80% rules use it even if your home is now worth more.
- Lenders can add conditions for a request: a good payment history, no second mortgage, sometimes proof the value hasn't fallen.
- FHA loans are different. FHA mortgage insurance follows its own rules and often lasts for the life of the loan; these tables are for conventional loans.
All figures come from a month-by-month model with interest rounded to the cent. It's the same model used to check the formulas in our PMI removal planner in 8 scenarios. PMI is counted with every payment up to and including the one that reaches the threshold. Not financial advice.