There are two types of mortgage insurance cancellation available to borrowers:

1. Automatic Cancellation: Borrower-paid mortgage insurance is automatically cancelled by the mortgage servicer when the loan amount is reduced to 78 percent of the original property value (or when the loan reaches its half-life, ex. 15 years on a 30-year mortgage).

2. Voluntary Cancellation: Borrowers can request that mortgage insurance be cancelled when they believe that their current loan amount is 80 percent or less of their current property value. An appraisal will be required to validate the value of the property.