When does PMI automatically drop off a mortgage?

By law, your lender must automatically terminate PMI when your loan balance reaches 78% of the original home value — assuming you're current on payments. For a $400,000 home with 5% down, that means when your balance drops to $312,000.

Can I request PMI removal at 80% LTV?

Yes. Once your loan balance reaches 80% of the original home value, you can request PMI cancellation in writing. You'll need to be current on payments and may need an appraisal to confirm your home hasn't lost value.

How much does PMI cost per month?

PMI typically costs between 0.2% and 2% of the loan balance per year. For a $350,000 loan, that's roughly $58 to $583 per month depending on your FICO score and down payment. Borrowers with scores above 760 pay the least.

When Does PMI Drop Off Your Mortgage?

If you put down less than 20% on a conventional mortgage, you're paying Private Mortgage Insurance (PMI) — an extra monthly fee that protects the lender, not you. The good news: PMI doesn't last forever. Here's exactly when it comes off and how to speed up the process.

What Is PMI and Why Do You Pay It?

PMI is required when your loan-to-value ratio (LTV) exceeds 80% — meaning you borrowed more than 80% of the home's value. Lenders consider high-LTV loans riskier, and PMI offsets that risk. It's added to your monthly payment automatically and can cost anywhere from 0.2% to 2% of your loan balance per year, depending on your credit score and down payment.

On a $350,000 loan, PMI might range from $58/month to $583/month. That's a huge range — your FICO score is the single biggest factor in what you'll pay.

The Two PMI Removal Thresholds: 80% and 78%

Federal law (the Homeowners Protection Act of 1998) sets two key thresholds for conventional loans:

80% LTV — Request removal. Once your loan balance drops to 80% of the original home value, you can submit a written request to cancel PMI. You must be current on payments and may need an appraisal.
78% LTV — Automatic termination. Your lender must automatically cancel PMI when your balance reaches 78% of the original value, provided you're current on payments. No request needed.

For example, if you bought a $400,000 home with 5% down (loan of $380,000):

Request at 80%: When balance reaches $320,000

Auto-drop at 78%: When balance reaches $312,000

Through normal amortization on a 30-year mortgage at 6.7%, it takes roughly 9–10 years to reach the 78% mark from a 5% down payment. That's a decade of PMI if you don't act.

PMI Costs by FICO Score Range

Your credit score has a massive impact on your PMI rate. Here's what annual PMI premiums typically look like for a 5% down payment on a $350,000 loan:

FICO Score Annual PMI Rate Monthly Cost

760–850 0.23% $67

740–759 0.35% $102

720–739 0.45% $131

700–719 0.62% $181

680–699 0.82% $239

660–679 1.10% $321

620–659 1.50% $438

The difference between a 760+ score and a 620 score is $371/month — or $4,452/year. Over 9 years of PMI, that's a $40,000+ swing based solely on your credit score.

Four Ways to Get Rid of PMI Faster

Make extra payments. Even $200/month extra on a $350,000 loan at 6.7% can shave off 3+ years and get you to 80% LTV roughly 3 years sooner. Use our payoff calculator to model your timeline.
Request removal at 80% LTV. Don't wait for automatic termination. Track your balance and submit a written request as soon as you hit the 80% mark.
Get a new appraisal. If your home has appreciated, your current LTV may already be below 80%. A new appraisal ($300–$500) could eliminate PMI years early.
Refinance. If rates are favorable and your home value has risen, refinancing into a new loan at 80% LTV or below removes PMI. Check your numbers with our refinance calculator first.

FHA Loans: A Different Story

The rules above apply to conventional loans. FHA loans work differently:

FHA loans originated after June 3, 2013 with less than 10% down carry PMI for the entire loan term — it never drops off.
With 10% or more down, FHA PMI drops off after 11 years.
The only way to remove FHA PMI permanently is to refinance into a conventional loan.

Calculate Your PMI Timeline

Don't guess when your PMI will drop off. Our PMI calculator shows you the exact month your PMI can be removed based on your loan details, and how much you'll save by making extra payments to reach the 80% threshold faster.

Calculate When Your PMI Drops Off →