Cancelling MI
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Cancelling Mortgage Insurance

We’ve provided some basic information for you regarding cancelling MI. You must contact your mortgage lender to request cancellation or inquire how much longer mortgage insurance will remain on your loan.

As a Homeowner, You're Protected
A federal law called the Homeowners Protection Act requires that mortgage insurance be cancelled when you build up a certain amount of equity in your home. The law applies to most types of mortgages. Talk to your lender about how this applies to you.

When can I cancel MI?
When the balance on your mortgage reaches 80% of the home's original value or current appraised value, you may request cancellation of your MI. You must have a good payment history with respect to the mortgage, mortgage payments must be current and there can be no other loans against the home. Some lenders also require verification that the property did not decrease in value.

Will it get cancelled automatically?
When the mortgage balance reaches 78% of the home's original value
and payments are current, the lender is required to cancel the mortgage insurance automatically.

Do I get a refund?
You may be eligible for a refund of mortgage insurance premiums when your MI policy is cancelled. It depends on which type of MI product you have and certain other conditions. Consult your lender about your particular situation.

Where can I get more information on cancellation?
More information on the requirements for cancelling private MI can be found on the U.S. Department of Housing and Urban Developmentā€™s website at www.hud.gov.

This content is intended to provide an overview of mortgage insurance and federal law relating to mortgage insurance cancellation. Some states also have mortgage insurance cancellation laws that may apply to your loan. The information presented in this section does not constitute legal advice. Contact your lender or servicer for more information on the law and how it applies to your mortgage.