Borrowers have the right to cancel borrower-paid private mortgage insurance when certain cancellation requirements are met.
Private mortgage insurance, if paid by the borrower, private mortgage insurance, will be automatically cancelled when:
The mortgage balance is scheduled to reach 78% of the home's original value (as determined by the loan's initial amortization schedule); and
Payment are current.
A borrower may send the lender a written request to cancel private mortgage insurance when:
Your mortgage balance reaches, or is scheduled to reach according to your loan's initial amortization schedule, 80% of the original value of the property;
The mortgage balance reaches, or is scheduled to reach according to the loan's initial amortization schedule, 80% of the original value of the property;
The borrower has a good payment history;
The value of the home has not declined.
The borrower is entitled to a refund of the unearned portion of the mortgage insurance premium paid when the policy is cancelled. The refund must be transferred to the borrower by the lender within 45 days of cancellation.
