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Remove PMI Refinance Calculator
30-yr fixed avg 7.11% as of November 12, 2026
Source: Freddie Mac PMMS
Loan-to-value
73.7%
Dropping mortgage insurance saves about $196 a month even at the new rate.
No credit check to see options. Estimates use principal and interest only.
How this calculator works
Private mortgage insurance (PMI) on conventional loans and the mortgage insurance premium (MIP) on FHA loans protect the lender, not you, and can add a meaningful amount to your monthly payment. If your home has gained value or you've paid down the loan, refinancing into a conventional loan at 80% loan-to-value (LTV) or lower can remove that cost.
LTV is your loan balance divided by your home's value. This calculator shows your current LTV and whether you've reached 80%. If you haven't, it shows how much more principal you'd need to pay down to get there. Below 20% equity, a new conventional loan would typically still require PMI, so the savings shown may not apply.
Next, enter your current principal-and-interest payment and what you pay each month in PMI or MIP. We calculate a new payment on the same balance at the new conventional rate, with no mortgage insurance, and compare it with what you pay today. The difference is your monthly savings, and the break-even shows how long it takes to recover 2% closing costs.
This is especially useful for FHA borrowers. Many FHA loans carry MIP for the life of the loan, so refinancing to a conventional loan can be the main way to remove it. If you have a conventional loan, you may not need to refinance at all: you can usually ask your servicer to cancel PMI once you reach 80% LTV based on the original value, and it generally ends automatically at 78%. A new appraisal showing a higher value may also qualify you for removal, depending on your servicer's rules.
Compare the new rate carefully. If today's rate is much higher than your current one, the rate increase can outweigh the PMI you drop.
Worked example at this week's rates
A $280,000 balance on a $380,000 home is 73.7% LTV, so the 80% threshold is reached. If you pay $1,679 in principal and interest at 6% plus $180 in PMI, a new 30-year conventional loan at this week's 7.11% average would be $1,884 — a monthly increase of $25.
PMMS is a national purchase-mortgage benchmark, not a refinance quote, so your own offer may be higher or lower.
Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.
Frequently asked questions
- What LTV do I need to refinance without PMI?
- Conventional loans typically require 80% loan-to-value or lower to avoid PMI, which means at least 20% equity.
- Can I remove FHA MIP without refinancing?
- It depends on when the loan was originated and your down payment. Many FHA loans keep MIP for the life of the loan, in which case refinancing to conventional is the usual way to remove it.
- Can I cancel PMI without refinancing?
- On conventional loans, you can generally request cancellation at 80% LTV based on the original value, and it usually ends automatically at 78%. Your servicer sets the exact requirements.
- Does a higher home value help me drop PMI?
- It can. A refinance uses a new appraisal, so appreciation can bring your LTV to 80% or lower even if you haven't paid down much principal.
- Is removing PMI worth a higher interest rate?
- Only if the PMI you drop is larger than the payment increase from the rate. The calculator compares both in one monthly figure.
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