Guide

When Does PMI Drop Off?

Estimate PMI drop-off timing and total PMI paid with optional extra principal assumptions.

Quick answer: PMI often drops when your loan-to-value reaches lender thresholds, but exact rules vary by servicer and loan type.

How to use this guide

  1. Enter price, down payment, rate, and term.
  2. Add monthly PMI or rate assumptions.
  3. Model extra principal to see whether PMI may end earlier.

Common mistakes

  • Servicer policy and loan program details can differ.
  • Appraised value changes may alter cancellation timing.
  • Rounding differences can shift projected month slightly.

FAQs

Is PMI removal automatic?
Not always. Some loans auto-cancel at a threshold, while others may require a request.
Can extra payments remove PMI faster?
Extra principal may reduce balance faster and can accelerate estimated eligibility.
Does this apply to FHA mortgage insurance?
FHA mortgage insurance follows different rules and may not match conventional PMI assumptions.