Most tools only check the original-value math — the same schedule your servicer already follows. The money is in the second test: Fannie Mae and Freddie Mac rules allow cancellation at 75% LTV of current value for loans 2–5 years old and 80% past 5 years. A buyer who put 5% down in 2021 and saw 20% appreciation often qualifies today while their statement shows years of PMI ahead. Our calculator pulls an automated value estimate for your address and runs both tests side by side.
Six things, all on your closing documents or monthly statement: loan type, closing date, purchase price (or refi appraisal value), original loan amount, interest rate, and — optionally — your current balance and monthly PMI amount. The current balance makes the result exact; without it we compute your scheduled balance.
Your monthly PMI payment × 12 = annual savings, and PMI paid so far shows what the delay has already cost. Typical premiums run 0.3%–1.5% of the loan per year — on a $380,000 loan that's $95–$475 a month. The median result we model is around $200/month, or $2,400 a year, recovered with one letter.
| Test | Formula | Passing means |
|---|---|---|
| Original value | Balance ÷ original value ≤ 80% | Request cancellation now — usually no appraisal |
| Current value (2–5 yr loan) | Balance ÷ today's value ≤ 75% | Request now — servicer orders valuation |
| Current value (5+ yr loan) | Balance ÷ today's value ≤ 80% | Request now — servicer orders valuation |
| Automatic | Scheduled balance = 78% of original | Servicer must cancel without being asked |