What conditions need to be met to terminate Private Mortgage Insurance?
Under the Homeowners Protection Act of 1998, automatic termination of borrower paid PMI must occur on the date the outstanding principal balance on a loan closed on or after July 29, 1999 is scheduled to reach 78% of the lesser of the sales price or the original appraised value. All loan payments must be current on the loan as of this date in order for termination to occur. If the payments are not current at that time, termination must occur as of the date the borrower becomes current.
