What's the difference between automatic PMI termination and requesting cancellation?

Under the federal Homeowners Protection Act, your servicer must automatically terminate borrower-paid PMI once your loan balance reaches 78% of the original home value based on the amortization schedule, and it's required at the midpoint of the loan term regardless. But you don't have to wait: you can request cancellation once you reach 80% of the original value, which happens sooner if you've made extra payments. If your home has appreciated, you can request cancellation based on a new appraisal you pay for, sometimes reaching 80% far earlier. The CFPB details these rights at consumerfinance.gov. Requesting early cancellation, especially after appreciation, can save you months or years of premiums, so track your equity actively rather than waiting for automatic removal.