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 under
certain conditions. 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 page 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
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. We encourage you to contact us to determine if your account is eligible
for mortgage insurance cancellation.
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% Loan To Value),
- Actually reaches 80% of the original value of the property
Other considerations for approval of a cancellation request may include:
- Evidence that 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
If you do not request cancellation, and you are current on your loan payments, then
MI will terminate automatically:
- On the date the principal balance of your loan is first scheduled to reach 78% of
the original property value, or
- On the first of the month following the mid-point of the loan term (i.e. after 15
years for a 30 year mortgage).
If you think you are eligible to have your MI terminated, please contact us
and we will assist you.