PMI Cancellation / Termination
The month and balance at 80% LTV (borrower may request cancellation) and 78% LTV (automatic termination).
Example
You enter
- Original property value ($) 250000
- Original loan amount ($) 250000
- Interest rate (% APR) 6.5
- Term (months) 360
You get
- 80% LTV (request cancellation) 146
- 78% LTV (automatic termination) 156
Details, formula, and sources
The amortization-midpoint backstop, and PMI months saved.
Amortized balance B(m) = P*((1+r)^n - (1+r)^m)/((1+r)^n - 1), r = APR/12; the first month where B(m) <= 0.80*value and <= 0.78*value; midpoint backstop = ceil(n/2).
Per the Homeowners Protection Act of 1998 (12 USC 4901-4910) - automatic termination at 78% and borrower-requested cancellation at 80% of original value, with the amortization-midpoint requirement, by name.
CFPB consumer guidance free at consumerfinance.gov; uscode.house.gov for the statute. Estimate; the servicer governs.
Estimate. AHJ and licensed professional govern.
Field names used by the API: value, loan, rate_pct, term_months, month_80, month_78
- Scheduled amortization uses the original payment schedule, not extra principal12 USC 4901