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Mortgage Insurance Drop-Off Calculator

Federal Homeowners Protection Act requires lenders to auto-terminate PMI at 78% LTV based on original schedule, or at 80% LTV upon borrower request. This calculator projects when you'll cross that threshold through payments and appreciation.

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Auto drop-off month (78% original)

11 yr 3 mo

Requestable drop month (80% current)

4 yr 1 mo

Total PMI paid before auto-drop

$22,110

How the math works

PMI auto-drops at 78% LTV of original value based on scheduled amortization. Appreciation doesn't count for auto-drop but does for requestable drop at 80% current LTV.

Request BPO at year 2-3 if appreciation has been strong; you'll often hit 80% current LTV years before the auto-drop. Save $3K-$8K in total PMI payments.

How to Use

  1. Enter loan amount, rate, and original home value.
  2. Add any extra monthly payments and expected annual appreciation.
  3. See the month PMI drops off and total PMI paid.

Frequently Asked Questions

What's the 78% rule?

Homeowners Protection Act requires PMI auto-termination at 78% of original value based on scheduled amortization — regardless of actual home value. Borrower must be current. Lender acts automatically.

Can I request earlier termination?

Yes at 80% LTV based on current appraised value. Requires BPO or appraisal ($100-$500), written request, and being current on payments. Some lenders require 2 years seasoning first.

Does FHA MIP drop off?

No — FHA loans originated after June 2013 have permanent MIP on loans above 90% LTV (auto-drops at 10% down only). Most FHA borrowers refi to conventional to eliminate MIP after building 20% equity.

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