How hard is it to cancel PMI

No one likes to pay PMI. It is bad enough having to pay your mortgage every month. PMI - insurance required by lenders when a homeowner borrows more than 80% of the value of a home - which is of no (direct) benefit to the borrower, adds insult to injury. So, the quicker you can get rid of it the quicker you save.

Can you get rid of PMI?  The good news is that under the Homeowners Protection Act of 1998, banks are obligated to terminate PMI when the mortgage balance falls below 78% of the original value of the home at the time the mortgage was obtained.

Is that all? No. Borrowers can also petition the mortgage holder to drop PMI when the value of the home rises. Admittedly, in our declining market this is happening less frequently. However, clients who buy a 'fixer-upper' may see real appreciation when the work is complete. We have assisted a number of our clients is getting the PMI waived - generally at least a year or two after they took out the mortgage.And, as the real estate market recovers (and it will recover) there will be opportunities to drop PMI in the near future.