The best way to avoid paying mortgage insurance is to get a conventional loan with a 20% down payment. However, if you don't have enough for a 20% downpayment, there are options that require no mortgage insurance or offer you the opportunity to cancel it after you have met certain requirements. If you are an active, or past member of the military, VA Loans don't require a down payment, nor mortgage insurance. The Homeowners Protection Act gives you the right to request to cancel your mortgage insurance. You can do this when your principle balance falls below 80% of the original value of your home. This scheduled date should be given to you on your mortgage insurance disclosure form.Still have questions? Ask Us.