 TITLE: How Much Does Private Mortgage Insurance (PMI) Cost? CONTENT: How to Cancel PMI\n-----------------\nYou may need to pay a PMI premium when you first buy your home, but there are also four ways to get rid of PMI:\n*   **Automatic cancellation:** By law, your mortgage servicer can't require you to pay for PMI forever. It must automatically cancel the policy when you're scheduled to reach 22% equity (in other words, the principal balance is 78% of the home's original value), or when you're halfway through the repayment term. The timeline is based on the original loan's repayment schedule and value.\n*   **Request cancellation:** You may request a cancellation a little earlier—once you reach 20% equity based on the home's original value. However, you may need to meet other qualifications, such as not having a second mortgage, and you may have to pay for an appraisal.\n*   **Reappraise your home:** While the above methods depend on the home's original value, you may be able to pay for a reappraisal and request the PMI be canceled based on the current value and your equity. This can be beneficial if your home has quickly appreciated in value or if you've made home improvements that increased its value.\n*   **Refinance your mortgage:** Another option is to replace your mortgage with a new one. If you have at least 20% equity based on the current valuation, you may qualify for a conventional loan without PMI.\nYou may want to get rid of PMI as soon as possible to lower your mortgage payments. There's little downside, as the insurance doesn't protect borrowers. END