There's one number that determines whether you can cancel PMI: your loan-to-value ratio, or LTV. Before you call your servicer or pay for an appraisal, it's worth knowing roughly where you stand.
The fastest way to find out: enter your loan balance and home value into our free PMI Removal Calculator. It works out your LTV instantly and tells you whether you already qualify — no sign-up required.
Use the PMI Removal Calculator →Prefer to understand the math yourself? Here's how to work out your LTV by hand.
How to Calculate Your LTV
The formula is simple: divide your current loan balance by your home's value, then multiply by 100. The result is your LTV as a percentage.
LTV = (current loan balance ÷ home value) × 100. Example: a $260,000 balance on a home worth $350,000 is (260,000 ÷ 350,000) × 100 = about 74% LTV.
Where to Get the Two Numbers
- Current loan balance — your most recent mortgage statement shows it, or you can pull it from your servicer's online portal.
- Home value — use a realistic current estimate: recent comparable sales nearby, online value estimates as a rough guide, or a recent appraisal if you have one.
Be honest with the value figure. An optimistic guess can make you think you qualify when you don't — and lead to a wasted appraisal fee.
Reading Your Result
- Above 80% LTV — not yet eligible to request cancellation; you may need more paydown or appreciation.
- At or just below 80% LTV — you likely have the right to request cancellation; this is the key threshold.
- Well below 80% (for example, 75% or lower) — you have a strong case, and you may have qualified some time ago.
- At 78% on your loan schedule — your servicer should be terminating PMI automatically.
Remember: when you request cancellation, the 80% can be measured against your home's current value — not the price you paid. Appreciation can put you past the line sooner than you'd expect.
An Estimate Is a Starting Point, Not Proof
Your own LTV calculation tells you whether it's worth pursuing cancellation. It doesn't satisfy the servicer — they'll require their own valuation, an appraisal or BPO, to confirm the value. Think of your estimate as the green light to begin.
The Bottom Line
If your estimated LTV is at or below 80%, you may already be eligible to drop PMI. The next step is confirming it with a proper valuation and a correctly submitted request.
PMI Ninja can run a professional equity review using realistic current-value data, tell you whether you qualify, and handle the request from there — so you don't have to guess.
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