How it works
The loan is amortized month by month with interest rounded to the cent. Cancellation on request uses your actual balance (with any extra payments) against 80% of the home's original value. Automatic removal uses the original schedule, without extra payments, against 78%, or the month after the loan's midpoint. The appraisal route compares your balance with the lender's limit times the value now, grown each year. PMI still to pay counts every payment from now up to and including that one. These are the Homeowners Protection Act rules for conventional loans; lenders can add conditions and FHA loans differ. Tables: when does PMI come off.