Calculate your current loan-to-value ratio and find out when you can request PMI cancellation or when it automatically terminates.
Written & fact-checked by the CoverFormula editorial team · Last reviewed 2026-07-15
Under the federal Homeowners Protection Act, lenders must automatically terminate PMI once your loan balance reaches 78% of the original home value (based on your amortization schedule). You can also proactively request cancellation once you reach 80% of the original value, or sooner if your home has appreciated — in that case, a new appraisal can prove you've reached 80% loan-to-value ahead of schedule.
It computes your loan-to-value ratio two ways: against your original purchase price (the 78%/80% federal thresholds) and against your home's current estimated value (relevant if you're pursuing early removal via appraisal). It also shows how much annual PMI you're paying if you don't act, as motivation to check your eligibility regularly.
LTV = (Loan Balance ÷ Home Value) × 100. Automatic termination at LTV ≤ 78% of original value; eligible to request cancellation at LTV ≤ 80% of original value.Automatic termination happens by law once your balance hits 78% of the original value, with no action needed on your part (as long as you're current on payments). Requested cancellation lets you remove PMI earlier, once you reach 80%, but you must proactively ask your servicer and may need to pay for a new appraisal.
Yes — many lenders allow early PMI removal based on a new appraisal showing you've reached 80% loan-to-value using current market value, not just your original purchase price, though this typically requires a minimum 2 years of on-time payments (varies by lender).
No — FHA loans use MIP (Mortgage Insurance Premium), which has separate rules and, on most FHA loans originated after 2013, cannot be removed without refinancing into a conventional loan.