Enter six numbers and see your loan-to-value against both your original purchase price
and your home’s current value. Those two bases govern different cancellation
pathways, which is why one number on its own does not tell you where you stand.
No signup, no email, nothing hidden behind a form.
Your results
Your closing date falls before July 29, 1999, which is when the Homeowners
Protection Act took effect. The pathways below are set by that Act, so they do
not apply to your loan. Your servicer’s own policy governs instead, and
it is worth asking them directly what it says.
n/a
LTV against original purchase price
n/a
LTV against current estimated value
Which pathway each basis governs
These are estimates, not an appraisal. The current value you entered is
your own figure, and an LTV built on it is only as good as that number. Your servicer
decides whether mortgage insurance comes off, and they will use their own valuation,
not this one.
A valuation usually costs money, and you pay it. Servicers commonly require
a broker price opinion or a full appraisal before they will cancel. Expect roughly
$300 to $650 for an appraisal, at your expense. Confirm your
position with free data before you order one.
Meeting a threshold here does not mean your servicer will agree. Investors such as Fannie
Mae and Freddie Mac impose seasoning and value-basis requirements of their own, and
servicers apply them, so a homeowner who clears the federal threshold can still be told
no for reasons that are entirely lawful. EquityUp identifies whether you qualify. It is
not a lender, servicer, broker, or appraiser.
The weakest number above is the value you guessed at. That is the one your servicer will
argue about, and it is the one we pull from public county records rather than estimate.
Mortgage insurance cancellation under the Homeowners Protection Act does not run off a
single loan-to-value figure. Some pathways measure against what the home was worth when
you bought it, and one measures against what it is worth now. A homeowner in a market
that has appreciated can be nowhere near the threshold on one basis and past it on the
other, which is exactly the situation the calculator is built to surface.
Loan age matters too. The current-value pathway applies a stricter threshold to newer
loans, so the same equity position can qualify at five years and not at four.
There are further termination provisions in the Act beyond the ones calculated here,
including one tied to the midpoint of your amortization schedule. Check the
CFPB’s guidance on PMI cancellation
and the text of the Act at 12 U.S.C. §4901 and following for the complete picture.
Frequently asked questions
When can PMI be removed?
Under the Homeowners Protection Act there are several pathways, and which one reaches you first depends on your equity, your loan age, and which value basis applies. You can request cancellation at 80% LTV against your original purchase price (12 U.S.C. §4902(a)), and your servicer must terminate automatically at 78% of that same basis (12 U.S.C. §4902(b)). Against your home's current value, the threshold is 75% for loans under 5 years old and 80% at 5 years or older.
Can I remove PMI without refinancing?
Yes, that is what the Act's cancellation provisions are for. You submit a written request to your servicer once you meet a threshold. Refinancing also ends PMI, but it means a new loan and new closing costs, so it is usually the expensive route to the same outcome.
Does this calculator work for FHA loans?
It handles them separately, because it has to. FHA mortgage insurance premium is a different regime and the Homeowners Protection Act does not govern it. Select FHA above and the calculator will place your loan by closing date and down payment rather than running it through thresholds that do not apply.
Do I need an appraisal to cancel PMI?
Often yes, and you pay for it. Servicers commonly require a broker price opinion or a full appraisal, typically $300 to $650, before cancelling on a current-value basis. Confirm your position with free public data first so you are not paying for a valuation that comes back short.
My LTV clears the threshold. Will my servicer cancel?
Not automatically. Meeting the federal threshold makes you eligible to request cancellation, and the servicer still decides. Investor rules from Fannie Mae and Freddie Mac sit on top of the statute, and servicers apply seasoning and value-basis requirements that can be stricter. A denial on those grounds can be entirely lawful.
