A “Sample Letter To Cancel PMI Mortgage Insurance” is a template. It helps you request the removal of Private Mortgage Insurance (PMI). You might need this letter when your home’s value increases. Or, you’ve paid down your mortgage enough.
Want to ditch PMI? We’ve got you covered. This article provides letter samples. Use them as a guide.
We make it easy. Copy, paste, and tweak our samples. Get rid of PMI stress-free.
Sample Letter To Cancel Pmi Mortgage Insurance
Sample Letter To Cancel PMI Mortgage Insurance
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Lender’s Name]
[Lender’s Address]
Subject: Request to Cancel Private Mortgage Insurance (PMI) – [Your Loan Number]
Dear [Lender’s Name/Loan Servicer],
This letter is to formally request the cancellation of Private Mortgage Insurance (PMI) on my mortgage loan, account number [Your Loan Number], for the property located at [Your Property Address].
I believe I am eligible for PMI cancellation based on the following:
* My loan-to-value (LTV) ratio has reached 80% or less, as the outstanding principal balance is now [Your Current Loan Balance].
* I have a good payment history and am current on my mortgage payments.
* [Optional: Include any additional information, such as the date you reached 80% LTV, or if you have had an appraisal done. For example: “I have obtained a recent appraisal, attached to this letter, which values the property at $[Property Value] and confirms an LTV of less than 80%.”]
Please review my account and process the necessary steps to cancel the PMI. I would appreciate it if you could confirm the cancellation in writing, including the date PMI will be removed from my monthly payments and the new payment amount.
Thank you for your time and attention to this matter. I look forward to your prompt response.
Sincerely,
[Your Signature]
[Your Typed Name]
html
How to Write Letter To Cancel PMI Mortgage Insurance
Subject Line: Setting the Stage for Success
The subject line is your first, and perhaps only, chance to grab attention. Don’t squander it. Be direct, yet compelling. Opt for something like:
- Request for PMI Cancellation – [Your Loan Account Number]
- PMI Removal Application – [Your Property Address]
A concise subject line expedites processing. Lenders appreciate clarity.
Salutation: Politeness Pays Dividends
Begin with a respectful greeting. Addressing the letter to a specific individual is preferable, but not always feasible. If you lack a contact name, employ:
- Dear Mortgage Servicing Department,
- To Whom It May Concern,
Maintain a professional tone from the outset. Courteousness greases the wheels.
Introduction: State Your Purpose Perspicuously
The opening paragraph should unequivocally state your intention. Leave no room for ambiguity. For example:
“I am writing to formally request the cancellation of Private Mortgage Insurance (PMI) on my mortgage loan, account number [Your Loan Account Number], associated with the property located at [Your Property Address].”
Be explicit. Clarity vanquishes confusion.
Body Paragraph 1: Demonstrating Eligibility
This section is where you build your case. Highlight how you meet the lender’s criteria for PMI removal. Crucial points to include:
- Loan-to-Value (LTV) Ratio: “My current LTV ratio is [Your LTV Ratio]%, based on a recent appraisal/original purchase price. This surpasses the required [Required LTV Ratio]% for PMI cancellation.”
- Payment History: “I have maintained a sterling payment history, with no late payments within the past [Required Timeframe, e.g., 24 months].”
- Property Value Appreciation: “The property value has appreciated significantly since the loan’s inception, as evidenced by a recent appraisal.”
Substantiate your claims with factual data. Empirical evidence bolsters your argument.
Body Paragraph 2: Reinforcing Your Request and Offering Cooperation
Reiterate your desire for PMI cancellation and demonstrate your willingness to cooperate fully. Consider something akin to:
“I am confident that I fulfill all requisite conditions for PMI termination. I am prepared to furnish any additional documentation or information you may require to expedite this process. Please advise on the necessary steps to proceed.”
Proactivity showcases your earnestness.
Closing: A Graceful Farewell
End the letter with a professional closing. Standard options include:
- Sincerely,
- Respectfully,
- Thank you for your time and consideration,
Followed by your printed name, and your signature above it if sending a physical letter.
Contact Information: Making it Easy to Respond
Provide comprehensive contact details for easy communication:
- Full Name
- Property Address
- Loan Account Number
- Phone Number
- Email Address
Ensuring accessibility streamlines the lender’s response.
html
Frequently Asked Questions: Cancelling PMI Mortgage Insurance
This section provides answers to common questions regarding the process of cancelling Private Mortgage Insurance (PMI). Please review the information below to understand the requirements and procedures involved.
What is PMI and why do I need to cancel it?
PMI, or Private Mortgage Insurance, protects the lender if you stop making payments on your mortgage. Cancelling it once you have sufficient equity in your home can save you money on your monthly mortgage payments.
When am I eligible to cancel my PMI?
You are generally eligible to request PMI cancellation when your loan-to-value ratio (LTV) reaches 80%, meaning you own 20% equity in your home, based on the original property value.
What information should I include in my PMI cancellation letter?
Your letter should include your name, loan number, property address, and a clear statement requesting PMI cancellation. Also, state the reason for your request, such as reaching 80% LTV.
What documentation should I include with my cancellation letter?
Include documentation supporting your claim that you’ve reached 80% LTV, such as an updated appraisal, or information on significant home improvements that increased the property value.
What happens after I send the PMI cancellation letter?
The lender will review your request and documentation. They may require an appraisal to verify the current property value. If approved, your PMI will be removed from your monthly mortgage payment.