Under the Homeowners Protection Act, when can a borrower with a conventional loan automatically request cancellation of PMI?

The Homeowners Protection Act (HPA) of 1998 gives conventional loan borrowers the right to request PMI cancellation once their loan balance reaches 80% of the original purchase price or the original appraised value, whichever is lower. The lender must automatically terminate PMI when the balance reaches 78% based on the original amortization schedule, even without a request. Borrowers who have made extra payments or whose home has appreciated significantly can request early cancellation, though they may need a new appraisal. FHA loans have different and generally less flexible MIP (mortgage insurance premium) rules.