80% loan to value ratio means that your loan balance is at 80% of the home’s appraised value at the time of sale. So if your home appraised for $100k when you bought it, you need to pay down your loan to $80k to have PMI removed. You should have received an amortization schedule showing you when you will reach 80% LTV.

There are ways to have PMI removed prior to the date stated in your amortization schedule. For example, if your home has significantly appreciated in value or if you have made significant improvements, you may be able to request that a new appraisal be done.

Additional caveat: many lenders will only automatically remove your PMI at 78% LTV. But you are eligible to request (usually this request must be in writing) that PMI be removed when you reach 80% LTV.