As a Homeowner, You're Protected
A federal law called the Homeowners Protection Act requires that mortgage insurance
be canceled 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 You Can Cancel
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. Of course, 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.
Automatic Cancellation
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.
What About a Refund?
You may be eligible for a refund of mortgage insurance premiums when your MI policy
is canceled. It depends on which type of MI product you have and certain other conditions. Consult
your lender about your particular situation.
Find Out When You Can Cancel
Click here for our MI cancellation calculator.
Content on this page of www.radian.biz 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.
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