Check your PMI removal paths
Use the original value from closing, usually the lower of purchase price or appraised value. For borrower-requested cancellation, servicers often use original value unless they approve a current-value appraisal path.
| Path | Target balance | Principal gap now | Months to target | Estimated PMI / cost | Plain-English note |
|---|
| Scenario | Balance after action | Original-value LTV | Current-value LTV | Monthly P&I impact | Warning |
|---|
Automatic PMI termination at 78% is simplified as a balance target. Actual timing can depend on the original amortization schedule, whether the loan is current, and your servicer's interpretation of the Homeowners Protection Act and investor rules.
Methodology notes
LTV targets
Borrower-requested cancellation is estimated at 80% LTV, and automatic termination at 78% LTV using original value. A separate appraisal path uses current estimated value at 80%.
Paydown timing
The calculator amortizes the current balance with the current principal-and-interest payment, rate, and remaining term until each target balance is reached.
Option comparison
Appraisal break-even divides appraisal cost by monthly PMI. Refinance break-even compares closing cost against payment plus PMI savings, but total interest and rate-reset risk still matter.
Results are estimates for educational purposes only and are not financial advice. PlainFigure may earn a commission from partner links, but calculator formulas are independent. See full disclosure.