The borrower-requested cancellation right under the Homeowners Protection Act (12 U.S.C. §4902) kicks in at 80% loan-to-value of your original value — the lower of purchase price and original appraisal. So the paydown is a subtraction:
| Your number | Example |
|---|---|
| Original value | $400,000 |
| 80% threshold | $320,000 |
| Current balance | $332,000 |
| Paydown to request cancellation | $12,000 |
| Balance for automatic termination (78%) | $312,000 |
Our PMI calculator does this math with your real numbers, including your scheduled automatic-termination date.
It comes down to break-even. PMI commonly costs $150–$400 a month. If you are $12,000 from the line and PMI is $200/month, paying it off stops a $2,400/year charge — a strong move if you have the cash and no higher-interest debt. If you are $60,000 away, the money usually works harder elsewhere, and appreciation or the automatic 78% date gets you there without the outlay.
Yes — because the threshold tracks your balance, every extra dollar of principal pulls your 80% date forward. A modest recurring extra payment can shave a year or more off your PMI. The trade-off is the same as a lump sum: worth it when you are close, less compelling when you are far.
Enough to reach 80% of the home’s original value for a written request, or 78% for automatic termination — current balance minus the threshold. If your home appreciated, you may already qualify on current value with no paydown.
Not on its own — you also need to meet the payment-history and occupancy conditions, and the loan must be current, then submit a written request. See the full PMI removal requirements.
Paying down avoids closing costs and keeps your rate. Refinancing only makes sense if today’s rate beats yours — see does refinancing remove PMI.