Need to ditch your FHA mortgage insurance? You’ll likely have to write a letter. This letter formally asks your lender to remove it. It’s needed when you’ve met certain requirements. These requirements often involve loan-to-value ratio or loan age.
Ready to write that letter? We’ve got you covered. This article is packed with sample letters. Use them as a guide.
We’re making it easy. Find the template that fits your situation. Customize it and send it off. Let’s get that mortgage insurance removed!
Sample Letter To Request Removal Of Fha Mortgage Insurance
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Email Address]
[Your Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[Lender’s City, State, Zip Code]
**Subject: Request for Removal of FHA Mortgage Insurance**
Dear [Lender’s Name],
I am writing to request the removal of the Federal Housing Administration (FHA) mortgage insurance from my loan. My loan number is [Your Loan Number], and the property address is [Your Property Address].
I believe I am now eligible for the removal of this insurance based on the following:
* **Loan-to-Value (LTV) Ratio:** My current loan-to-value ratio is below 80%, based on [Appraisal/Original Purchase Price]. [If using appraisal, include: I recently had the property appraised, and the current market value supports this LTV.]
* **Loan Age:** [If applicable: My loan originated before [Date] and has been active for more than five years.]
I have consistently made timely payments on my mortgage and am in good standing with [Lender’s Name].
I would appreciate it if you could review my request and inform me of the steps necessary to remove the FHA mortgage insurance. Please let me know if you require any additional documentation from my end, such as an updated appraisal.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To Request Removal Of Fha Mortgage Insurance
Subject Line: The Clarion Call of Your Request
- Keep it succinct and crystalline.
- Example: “Request for FHA Mortgage Insurance Removal – [Your Loan Number]”
- A well-crafted subject line ensures your missive doesn’t languish in obscurity.
Salutation: Addressing the Gatekeepers
- Use a formal salutation.
- “Dear [Mortgage Servicer Name],” or “To Whom It May Concern,” if the specific contact is unknown.
- Avoid casual greetings; maintain decorum.
Introduction: Setting the Stage with Precision
- State your intent unequivocally.
- “I am writing to formally request the removal of FHA mortgage insurance from my loan, account number [Your Loan Number].”
- Mention the property address for clarity.
- Briefly allude to your eligibility based on loan-to-value (LTV) ratio.
Body Paragraph 1: Demonstrating LTV Compliance
- Elucidate how your loan-to-value ratio meets or exceeds the requirements for PMI removal.
- Provide specific data: “My current LTV is [LTV Percentage]%, based on a recent appraisal.”
- Cite the original purchase price and current appraised value, if available.
- Substantiate your claims with verifiable facts.
Body Paragraph 2: Highlighting Your Impeccable Payment History
- Emphasize your punctilious payment record.
- “I have consistently made timely mortgage payments for [Number] years, without any delinquencies.”
- A flawless payment history bolsters your petition.
- Mention any significant improvements made to the property that might enhance its value.
Supporting Documents: Fortifying Your Position
- List any enclosed documents that support your request.
- Examples: Appraisal report, payment history statement.
- “Please find enclosed a recent appraisal report and a payment history statement for your perusal.”
- Ensure all documents are legible and pertinent.
Closing: A Courteous Denouement
- End with a polite and proactive closing.
- “Thank you for your time and consideration. I look forward to your expeditious response.”
- Provide your contact information: phone number and email address.
- Use a formal closing: “Sincerely,” or “Respectfully,” followed by your name and signature (if sending a physical letter).
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Frequently Asked Questions: Removing FHA Mortgage Insurance
Understanding the process of removing FHA mortgage insurance can be complex. This FAQ section addresses common inquiries to help you navigate the requirements and procedures.
When can I request removal of FHA mortgage insurance?
The timing depends on when your loan was originated. For loans endorsed after July 14, 2013, and with a loan-to-value (LTV) ratio greater than 90%, mortgage insurance is required for the life of the loan. If the LTV was less than or equal to 90%, it can be canceled after 11 years, assuming you meet certain conditions.
What conditions must I meet to have my FHA mortgage insurance removed?
Generally, you must have made all mortgage payments on time for the previous 12 months, have a current loan-to-value ratio that meets the lender’s requirements, and may be required to obtain an appraisal at your own expense to verify the current property value.
How do I calculate my current loan-to-value (LTV) ratio?
Divide your current outstanding loan balance by the current appraised value of your home. The result is your LTV ratio, expressed as a percentage. For example, a loan balance of $150,000 and a home value of $200,000 results in a 75% LTV.
What information should I include in my removal request letter?
Your letter should include your name, property address, loan number, a clear statement requesting the removal of FHA mortgage insurance, and any documentation supporting your eligibility, such as an updated appraisal (if applicable).
Where should I send my mortgage insurance removal request letter?
Send the letter to the mortgage servicer or lender responsible for managing your loan. Contact them directly to confirm the correct mailing address for such requests.