PMI Cancellation (Borrower-Requested)
For many covered mortgages, a borrower may request PMI cancellation when the principal balance is scheduled to reach 80% of the home's original value, subject to conditions such as being current and having a good payment history. The cancellation process is governed by federal requirements described by the, and further compliance detail appears in federal banking compliance materials.
- Where it applies
- Federal
- When it comes up
- Servicing
- Property types
- Residential (conventional)
In practice
Operational decisioning often must reconcile scheduled amortization versus actual curtailments (extra principal payments) and confirm lien status as part of the request workflow.
Related terms
Residential Financing
- Accrual Rate
- Adjustable Rate Mortgage (ARM)
- Amortization
- Application (TRID application)
- Conforming Loan Limit
- Pay Rate
- PMI Automatic Termination
- Private Mortgage Insurance (PMI)
- Secured Overnight Financing Rate (SOFR)
- TILA-RESPA Integrated Disclosures (TRID)
General information, not legal, tax or financial advice.