When can mortgage guaranty insurance (MI) be cancelled?
In many cases, MI may be canceled when the loan is paid down to 80% of the original property value. For many loans that closed on or after July 29, 1999, MI will automatically terminate when the outstanding principal balance reaches 78% of the original value of the home. MI generally is cancelable once you have built up enough equity and are current on your mortgage payments. PMI Mortgage Insurance Co. itself cannot initiate cancellation, so you should contact your lender or your lender’s servicer if you have questions about the process for cancelling MI.
