When Does PMI Come Off? The 80%, 78% and Midpoint Rules

PMI comes off when your loan balance falls to 80% of your home's original value and you ask for it, or automatically at 78%. On a typical 30-year loan with 10% down at today's rates, that takes about 8 to 10 years on the normal schedule. You can often get there faster with extra payments or a new appraisal. Our mortgage calculator shows your own PMI drop-off date.

Here's how each rule works, with a real timeline.

The three federal rules for ending PMI

The Homeowners Protection Act sets the rules for most conventional loans on a primary home made since 1999. There are three triggers.

1. Cancellation on request at 80%

You can ask your servicer to cancel PMI once your balance reaches 80% of the original value. "Original value" usually means the lower of the purchase price or the appraised value at closing.

To qualify, you typically need to:

• Make the request in writing.
• Have a good payment history (no recent late payments).
• Show that the home hasn't lost value, which may require an appraisal.
• Have no second mortgage or home equity loan on the property, in many cases.

You can reach 80% early by making extra payments. The rule counts your real balance, not just the original schedule.

2. Automatic termination at 78%

If you never ask, PMI must end automatically. That happens on the date your balance is scheduled to reach 78% of the original value. You must be current on your payments.

This is based on the original amortization schedule. Extra payments don't move the automatic date forward, which is why asking at 80% is usually the faster route.

3. The midpoint rule

PMI must also end at the midpoint of your loan term, if you're current. For a 30-year loan, that's after 15 years. This is mostly a backstop for unusual loans, such as those with interest-only periods, where the balance falls slowly.

The Consumer Financial Protection Bureau has a plain-language guide to PMI if you want the official details.

Example timeline: $400,000 home, 10% down, 7.32%

Here's a worked example using the October 2026 average 30-year rate of 7.32%.

• Home price: $400,000
• Down payment (10%): $40,000
• Loan amount: $360,000 (90% loan-to-value)
• Monthly principal and interest: $2,472.95
• 80% of original value: $320,000
• 78% of original value: $312,000

PMI pricing varies with your credit score and down payment. We'll assume 0.6% of the loan per year, which is $180 a month. Your quote may be higher or lower.

Milestone	Balance target	When you reach it	PMI paid by then*
Request cancellation (80%)	$320,000	Month 104 (about 8 years, 8 months)	$18,720
Automatic termination (78%)	$312,000	Month 119 (about 9 years, 11 months)	$21,420
Midpoint of the loan	—	Month 180 (15 years)	Backstop only

*At an assumed $180 a month.

Asking at 80% instead of waiting for 78% saves 15 months of PMI. At $180 a month, that's $2,700 you keep. Mark the date on your calendar.

It takes this long because early payments are mostly interest. In year one, only about $3,400 of your roughly $29,700 in payments goes to principal.

Faster ways to drop PMI

You have three main levers.

Make extra principal payments

Extra payments go straight to your balance. On this $360,000 loan:

Extra per month	Time to reach 80% ($320,000)
$0	8 years, 8 months
$300	4 years, 10 months
$500	3 years, 9 months

Paying $300 extra cuts nearly four years of PMI. That avoids roughly $8,300 in premiums at $180 a month, on top of the interest you save.

Use your home's new value

If your home has appreciated, a new appraisal may show you're already at 80% or lower of the current value. Many servicers accept this, but the bar is often higher for newer loans.

A common investor guideline is:

• Loan 2 to 5 years old: balance at or below 75% of the current appraised value.
• Loan more than 5 years old: balance at or below 80% of the current value.

Back to our example. Suppose the home gains 5% a year. After three years it's worth about $463,050 and your balance is about $348,888. That's 75.3%, just above a 75% cutoff. After four years, it's about 70.9%, which would usually qualify.

At a slower 3.5% a year, you'd be at about 75.1% after four years and 71.6% after five. Your servicer sets the rules, so call before you order an appraisal. You'll usually pay for it yourself, often several hundred dollars.

Remodel or refinance

Major improvements can raise your home's value enough to qualify under the appraisal route. Refinancing is another path, especially if rates fall. A new loan at 80% or less of the current value typically won't need PMI. Check whether the savings beat the closing costs with our refinance break-even calculator.

FHA mortgage insurance works differently

FHA loans don't have PMI. They have mortgage insurance premiums, or MIP, set by the federal government. The Homeowners Protection Act's 80% and 78% rules don't apply.

FHA borrowers pay two kinds of MIP:

• Upfront MIP, usually added to the loan balance at closing.
• Annual MIP, paid monthly with your mortgage payment.

How long annual MIP lasts depends mostly on your down payment:

FHA down payment	How long annual MIP typically lasts
10% or more	11 years
Less than 10%	Life of the loan

Many FHA borrowers with 3.5% down eventually refinance into a conventional loan. Once you have 20% equity, the new loan usually won't need mortgage insurance at all. Learn more on HUD's FHA pages.

VA loans have no monthly mortgage insurance. USDA loans carry an annual guarantee fee that typically lasts for the life of the loan.

A simple PMI checklist

• Find your original value and loan amount on your closing disclosure.
• Look up your scheduled 80% date on your PMI disclosure or with a calculator.
• Set a reminder a few months ahead and send a written request.
• If your home has gained value, ask your servicer about appraisal rules.
• After PMI ends, check your next statement to confirm the premium is gone.

See your own PMI drop-off date

Every loan is different. Enter your price, down payment, rate and PMI rate in our mortgage calculator to see the month PMI ends and how extra payments change it. If you're still shopping, our how much house can I afford tool shows how PMI affects your budget.