percent
Homeowners can save thousands by canceling private mortgage insurance [PMI]. [PMI is an insurance on the top 20% of the loan](http://www.investordictionary.com/definition/pmi.aspx) so the lender is assured that they will get the full 80% or balance of the funds outstanding if the property goes into foreclosure.

The [Homebuyers Protection Act](http://www.qp.gov.bc.ca/statreg/stat/H/98031_01.htm) was passed by Congress in 1998 requiring lenders to notify homeowners when the equity in their home reached a level where PMI was no longer required.

“Your home falls under this act if you purchased, constructed, or refinanced your single-family home after July 29, 1999, and your loan is not a government-insured FHA or VA loan. If you purchased your home before July 29, 1999, your lender is not required to cancel your PMI when you reach 20 or 22% equity, but many lenders will do so if you ask.”

How to Cancel PMI
Here’s a [great article on removing PMI from your loan](http://www.alwagner.com/pmi.shtml) by Chip Wagner, an accomplished appraiser in the Chicagoland area. Most lenders require and approved and state certified appraiser to perform the evaluation.

[Here’s how they do it in Minnesota. I suspect it is not much different than other states.](http://www.ag.state.mn.us/consumer/fraud/Fraud_PMI.htm)

Note: Check with your lender for specific instructions.