How to Get Rid of PMI in 2026: Stop Paying $200+/Month
Calculate your PMI removal timeline with our [PMI Removal Calculator](/calculators/finance/pmi-removal-calculator).
What PMI Actually Costs
| Loan Amount | PMI Rate | Monthly PMI |
|---|---|---|
| $200,000 | 0.5% | $83/month |
| $300,000 | 0.7% | $175/month |
| $400,000 | 1.0% | $333/month |
Over 5 years on a $300,000 loan: $10,500 paid in PMI — with zero benefit to you.
3 Ways to Cancel PMI
Method 1: Automatic Cancellation (Slowest)
Under the Homeowners Protection Act, lenders must cancel PMI automatically when your loan reaches 78% of original purchase price per the original amortization schedule. On a 30-year loan this typically happens around year 7-8.
Method 2: Request Cancellation at 80% LTV (Faster)
You can request cancellation when the balance hits 80% of original purchase price — 2% earlier than automatic.
Steps:
1. Submit written request to lender
2. Show good payment history (no late payments)
3. Confirm home value has not declined
4. Lender must cancel within 30 days
Method 3: New Appraisal After Home Appreciates (Fastest)
If your home appreciated, you may already be below 80% LTV even without paying down much principal.
Example: Bought at $300,000 with $270,000 loan (90% LTV). Home now worth $340,000. LTV = 270,000/340,000 = 79.4% — below 80%, PMI can be removed.
A $500 appraisal pays for itself in 3 months of saved PMI.
Extra Payments Accelerate PMI Removal
| Extra Monthly Payment | PMI Cancellation Month | Time Saved |
|---|---|---|
| $0 | Month 88 | 0 months |
| $100/month | Month 74 | 14 months |
| $250/month | Month 62 | 26 months |
| $500/month | Month 50 | 38 months |
FHA Loan Warning
FHA MIP (mortgage insurance premium) lasts the entire loan term for loans originated after June 2013 with less than 10% down. The only way out: refinance to a conventional loan once you have 20% equity. Use our [Mortgage Calculator](/calculators/finance/mortgage-calculator) to model the refinance math.
Related Tools
- [Biweekly Mortgage Calculator](/calculators/finance/biweekly-mortgage-calculator) — Pay off loan and remove PMI faster
- [Home Renovation ROI Calculator](/calculators/finance/home-renovation-roi-calculator) — Build equity with improvements
- [Mortgage Calculator](/calculators/finance/mortgage-calculator) — Full mortgage breakdown