When can I get rid of mortgage insurance?

On an FHA loan:

You are required to pay the annual mortgage insurance premium for at least five years.  After five years, whenever your loan reaches 78% of the original sales price or appraised value, whichever is lower, the mortgage insurance is canceled.


On a conventional loan:

Annual Premiums:  Annual premiums must be paid for a minimum of two years no matter what.  After two years, there are two ways to cancel mortgage insurance by contacting your servicer (they are the ones who instruct the MI companies to cancel the policies).

When the borrower’s loan amount reaches 78% based on the original sales price or appraisal, whichever is lower, by law the mortgage insurance must be canceled.

When you believe your loan is 80% or less due to an increase in value in their home, you may order an appraisal at your own expense and appeal to your lender for mortgage insurance removal.  The lender may deny the request for cancelation if:

-You have a second mortgage.
-The property has declined in value and does not have 20% equity.
-You had a payment late by 30 days or more within the year preceding the cancellation date, or late by 60 days or more within the previous two years.