Mortgage insurance can usually be canceled by the home buyer after he
or she has at least 20 percent equity in the home. Borrowers should contact
their servicer to find out the procedure for canceling mortgage insurance
when they think they have achieved 20 percent equity. Guidelines for canceling
private mortgage insurance are set by investors. Typically, investors
will require an appraisal on the property. The servicer can recommend
qualified local appraisers.