What's mortgage insurance and when can you remove it?

Mortgage insurance protects the lender if you default, so the question is whether you want to pay it if you don't have to. On a conventional loan, private mortgage insurance can be removed: you can request cancellation at 80% of the original value, and it must end automatically at 78% if you're current on payments. Avoiding it takes stronger qualifications and more cash invested in the home. VA loans don't have monthly mortgage insurance, which is a major advantage for eligible buyers. FHA loans have their own mortgage insurance, which, depending on your down payment, can last for the life of the loan.