The 22% figure applies to loans originated on or after July 29, 1999, and refers to automatic cancellation once 22% of the original face value of the loan has been paid off. The lender, as his discretion, may cancel the MI at 20% equity, if payments have been current (and if you've solicited them to do so). They may still require an appraisal.

The Homeowners Protection Act of 1998 (which governs MI cancallation) provides for automatic cancellation on the quot;date on which the the mortgage is first scheduled to reach (or actually reaches) a level that is 80% of the original value... based solely on the original amortization schedule.quot; This would be years down the road.

However, if it's a loan that hasn't yet been paid down to 80% based on the original amortization schedule, and if the borrower solicits cancellation, quot;...the LTV ratio (determined by outstanding balance against appraised value) must be 75% or less if the seasoning of the mortgage is between two and five years, and 80% or less if the seasoning is greater than five years.quot;