Automatic cancellation can arrive later than a borrower-request path. The difference is often whether you understand which value your servicer will use and what evidence they require.
Loan-to-value ratio compares the mortgage balance to the value used for the cancellation review. A $300,000 balance against a $400,000 value is 75% LTV.
The tricky part is not the arithmetic. The tricky part is which value the servicer or investor will accept for the specific cancellation path.
Borrower-request cancellation is the path homeowners usually ask about when they believe they have reached enough equity. Automatic termination is the scheduled lender action that often happens later.
For many conventional loans, the 78% automatic rule is tied to the original value schedule. That can lag behind real market value when the home has appreciated.
Before you contact the servicer, know the loan type, current balance, approximate value, PMI amount, occupancy, and payment history. If your request depends on current value, expect the servicer to control the valuation process.
Calculate your current LTV.
Check whether the loan is conventional PMI, FHA MIP, VA, or USDA.
Review recent payment history for late payments.
Find the servicer's current PMI cancellation instructions.
Keep copies of every request and response.
No. It is a common milestone, but servicer, investor, payment-history, occupancy, and valuation rules can change the answer.
The 78% threshold usually refers to automatic termination. A borrower-request path can be different and may require you to ask before the automatic date.
Sometimes, depending on the investor and servicer rules. Requests based on current value often require a valuation ordered through the servicer.
See your loan-to-value and whether a removal request makes sense.