If it is an FHA mortgage then you may not ever be able to cancel it. They just recently changed their rules for new loans this year. If you obtained an FHA loan prior to June of 2013, then your PMI should drop off automatically once the amount of your loan is paid down to 78% of the original purchase price.
If you have a conventional loan, then so long as you have had the loan for more than 2 years and not had any late payments in the last 12 months you can petition your lender to drop the PMI early (before the loan balance reaches 78% of the original price). The process would then involve obtaining a new appraisal - at your expense - and if the appraisal indicates you have at least 20% equity in your home then the lender should be receptive to dropping the PMI.
The other option would be to explore refinancing altogether into a new mortgage. If there is 20% equity or more based on the new appraisal then it's not an option for the lender to require PMI. This could also give you the added benefit of lowering your interest rate and/or payment since rates are still pretty low.
Feel free to give me a call and we can explore your options together.
Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 | Fax (248) 945-4842 | Direct (248) 728-0078
Visit our website at http://www.pmaclending.com
Each lender and mortgage is different on what the procedure would be. Your first step is to contact your lender/loan servicer to see what the procedure is with them, and go from there. How they arrive at the calculations for the removal of the PMI depends on several factors, your promptness of payments, the length of time that has elapsed since you first obtained your mortgage, as well as any restrictions that may be mentioned in the language of your mortgage. The norm is that when the balance that you owe on your mortgage is less than 80% of the value of your home, many lenders will allow for the removal of the PMI. If by chance you have an FHA mortgage, the MIP stays in place for the duration of the mortgage, unless you refinance into a conventional loan. Good luck and I hope it works out.
Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty