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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.
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.
EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.
Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.
Learn more about our review process on the EveryCalc methodology page.
How this calculator works
What this page estimates
This Mortgage Insurance Drop-Off Calculator is built to give a quick, browser-based estimate for mortgage insurance drop-off. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.
Calculation approach
The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.
Example workflow
For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.
Practical checks
- Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
- Run a low, base, and high case when the inputs are estimates.
- Check the related calculators below when the next decision depends on a different assumption.
How to interpret the mortgage insurance drop-off result
Best use
Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.
Cross-check
Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.
Watch for
Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.
This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.
Before relying on this mortgage insurance drop-off estimate
Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.
Confirm source numbers
Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.
Separate cash flow from total cost
A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.
Run conservative cases
Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.
Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.
How to Use
- Enter loan amount, rate, and original home value.
- Add any extra monthly payments and expected annual appreciation.
- 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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