The Homeowners Protection Act of 1998 gives you the right to request cancellation of the mortgage insurance (MI) premium that is added to your loan payments. If you do not request cancellation, the law also provides rules for automatic termination of MI. The law applies to mortgage loans on single family, primary residences originated on or after July 29, 1999 where the borrower is paying the cost of the MI.
Note: The information provided on this is not an implied guarantee that your loan meets the mortgage insurance cancellation guidelines. According to the Homeowners Protection Act of 1998, examples of conditions that would prevent the cancellation of mortgage insurance include, but are not limited to: a non-owner occupied residence, multi-family residences, a non-qualifying payment history or a decline in property value. Some investors and states have different rules regarding the cancellation of mortgage insurance. Those rules may be more or less restrictive than those described above. In addition, loans categorized as “high risk” may also have different cancellation guidelines.
If you have a good payment history, you may request cancellation of your MI on or after the date the principal balance of your loan:
- Is first scheduled to reach 80% of the original value of the property (80% LTV).
- Actually reaches 80% of the original value of the property.
Other considerations for approval of a cancellation request may include:
- Evidence the value of the property securing the mortgage has not declined below the original value
- Certification that there are no other liens against the property
Thank you for reading. Please let us know if you need help getting your private mortgage insurance removed from your loan.