oneil asked in Business & FinanceInsurance · 1 decade ago

can i cancel mortgage insurance?

8 Answers

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  • 1 decade ago
    Favorite Answer

    "Mortgage insurance" can mean any number of things. If you're referring to your homeowners coverage, yes you can; but if your mortgage still exists, the lender will put forced coverage in place (probably at a higher cost). Private mortgage insurance, or PMI, is coverage that the lender requires if you have less than 20% equity in the property. If you have or can pay down your mortgage to less than 80% of the home value, you can get this cancelled. Eliminating PMI is a high priority; it protects the lender, not you.

    If you are talking about mortgage life or disability protection, yes you can cancel it; but don't do so until you have something else in place. In most cases, your mortgage amount should have been a factor included in your regular life and disability planning. Supplemental life or disability coverage is usually not as cost effective.

    Source(s): Financial planner, 11 years
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  • mineau
    Lv 4
    4 years ago

    Mortgage Insurance Cancellation

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  • ?
    Lv 7
    1 decade ago

    You may cancel Mortgage Life Insurance. You cannot cancel PMI insurance that guarantees your lack of 20% down payment

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  • Boots
    Lv 7
    1 decade ago

    What type of mortgage insurance?

    I'm in the US so my answers are based on that.

    PMI: private mortgage insurance is usually required by the lender if you have less than 20% equity in the house. This insurance protects the lender. This can be dropped 1 of ways.

    1. your loan to value gets to 78%- PMI usually drops off on it's own.

    2. your loan to value is 80% or less, you have not missed or been late on a payment for the last few years and your loan is at least 5 years old. You can contact your mortgage company to have your house appraised to see if it qualifies for PMI deletion.

    Hazard Insurance - is the private insurance you purchase to pay for damage to your house. (such as fire, hail, water pipe burst). This is usually required by your mortgage company but you get to pick the company you get your insurance with. If your house is financed, you will have to have hazard insurance. If your house is paid for, then no- you are not required to purchase hazard insurance. You can choose to self insure. Of course, if your house burns down - you will have to pay out of pocket to rebuild.

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  • 1 decade ago

    If you are talking about the mortgage insurance that your bank forced on you when you purchased the home (the coverage that protects them in the event you default on the loan), then, no, you cannot cancel without your escrow being above the percentage allowed by your mortgage carrier.

    You'll need to discuss with them as to the percentage value of escrow to loan payoff and they'll let you know when they will allow you to cancel.

    Source(s): Owner of an insurance and financial services agency. Over 21 years experience.
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  • 1 decade ago

    You can not cancel MIP insurance put on your loan for less then 20% down in some cases.. If you are talking about home insurance you put on your house yes you can cancel it.. ONLY if 1 you are replaceing it or 2 you no longer need it.

    Source(s): 30 years Realtor
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  • Anonymous
    6 years ago

    I sincerely know of a trusted personal loan lender, Check them out: chryslerfinance@yahoo.com

    Source(s): I sincerely know of a trusted personal loan lender, Check them out: chryslerfinance@yahoo.com
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  • 6 years ago

    yes you surly can,contact your insurance agent .

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