Mortgage PMI Removal Calculator

PMI runs $50–250+/month — auto-canceling at 78% LTV but earlier removal options exist.

Original home value

Current balance

Current home value

Monthly PMI

New appraisal cost

Current LTV %

0.7%

Annual PMI saved if removed

$1,800

Appraisal payback (months)

3.7

How the math works

Current LTV = balance / current value. Below 78% = lender auto-cancel; below 80% = borrower request.

$320k / $450k = 71.1% LTV. PMI saved: $150 × 12 = $1,800/yr. Appraisal pays back in 3.7 mo.

How to Use

Enter original home value.
Enter current balance.
Enter current home value.
Enter monthly pmi.
Enter new appraisal cost.
Read current ltv %.

Frequently Asked Questions

PMI removal triggers?

Conventional auto-cancel: at 78% LTV based on original value (HPA 1998). Borrower-requested: at 80% LTV based on original value, must be current on payments, no second-lien junior. New appraisal route: at 75–80% LTV based on current value (typically requires 2-yr seasoning, lender-paid appraisal $400–700). FHA MIP: cannot be removed unless refinance to conventional once LTV <80%. VA, USDA: no PMI but funding fees apply. Typical removal saves $1,200–3,000/year.

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.