Yes. You have the right to ask your servicer to cancel PMI on the date the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. The first date you can make the request should appear on your PMI disclosure form, which you received along with your mortgage. If you can't find the disclosure form, contact your servicer.
You can ask to cancel PMI ahead of the scheduled date, if you have made additional payments that reduce the principal balance of your mortgage to 80 percent of the original value of your home.
For this purpose, “original value” generally means either the contract sales price or the appraised value of your home at the time you purchased it, whichever is lower. But, if you have refinanced, the “original value” is the appraised value at the time you refinanced.
Your servicer is legally required to grant your request to cancel your PMI as long as you meet the criteria below:
- You make your request in writing
- You have a good payment history and are current on your payments
- You can certify that there are no junior liens (such as a second mortgage) on your home
- You can provide evidence (for example, an appraisal) that the value of your property hasn’t declined below the original value of the home—if it has, you may not be able to cancel PMI on schedule
