If you’re reading this, chances are you’re on the brink of cancelling your private mortgage insurance (PMI) policy. Maybe you’ve reached the 20% equity threshold or found a better insurance option. Regardless of the reason, submitting a cancellation request letter can be intimidating. Where do you start? What should you include? Well, fear not. We’ve got you covered with a PMI cancellation request letter template that you can use as a guide or edit as needed. With this template, you’ll be able to confidently write a letter that could potentially save you hundreds of dollars a year. So, let’s dive in.
Private Mortgage Insurance (PMI) is an added expense that many homeowners would like to eliminate. PMI is typically required by lenders when the homeowner’s down payment is less than 20% of the property’s purchase price. If you have built enough equity in your home, you can request your lender to cancel the PMI.
The key to a successful PMI cancellation request letter is writing a clear and concise message that provides the lender with all the information necessary to assess your request. Typically, your request letter should include the following:
Your letter should start with a brief introduction, which should state your name, loan number, and the property address. You should indicate that you want to cancel the PMI and explain why you believe you are entitled to the cancellation. For example, you might say, “I am writing to request the cancellation of the PMI on my mortgage loan. I believe I have built enough equity in my home, and I am no longer required to pay PMI premiums.”
Your letter should include evidence that you have built sufficient equity in your home. You can provide a current appraisal or recent comparative market analysis (CMA) report that shows the value of your home has increased. Alternatively, you can provide a recent statement from your lender showing your current loan balance and the original purchase price of your home. You should also indicate the percentage of equity you have built up in your home to show the lender that you meet their requirements for PMI cancellation.
In your letter, you should request that the lender confirms when the PMI will be canceled. The lender should provide you with a confirmation letter, which should indicate the termination date of the PMI and the amount you will save on your monthly mortgage payment.
You should close your letter by thanking the lender for their consideration and providing your contact information, including your name, phone number, and email address. You should also indicate that you are open to communication and appreciate their prompt attention to your request.
In conclusion, writing a PMI cancellation request letter can be challenging. However, following the structure above, using clear language, and providing all the required information can greatly increase your chances of success. Remember to keep your message polite, concise, and professional, and you might just save yourself hundreds of dollars on your monthly mortgage payment!
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) due to the loss of my job. As you may know, I recently lost my job due to the economic conditions and I have been unable to find new employment since then. As a result, I am facing difficulty in making my mortgage payments, let alone affording the monthly PMI premiums.
Given my current financial difficulties, I would appreciate it if you could waive the PMI premiums and cancel my PMI immediately. As you already know, I have been a loyal and timely borrower for [Number of years] years. Therefore, I am hoping that you will understand my situation and grant my request.
Thank you for your understanding and cooperation in this matter.
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) due to the increased value of my property. As you may know, I have made significant improvements on my property since I first purchased it, which have increased its value considerably.
As a result, I have built up more than [80%] equity in the property, which means that I should no longer be required to pay PMI premiums. Therefore, I would appreciate it if you could cancel my PMI immediately and adjust my monthly mortgage payments accordingly.
Thank you for your attention to this matter.
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) based on my good payment history. As you are aware, I have been making timely and consistent payments on my mortgage, without any defaults or delinquencies, for a significant amount of time.
Therefore, I believe that I have built enough equity in my property to warrant the cancellation of PMI. I am hoping that you will take my payment history into consideration and grant my request for PMI cancellation.
Thank you for your time and attention to this matter.
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) due to the refinance of my mortgage. As you know, I have refinanced my mortgage with another lender, which means that I am no longer required to carry PMI.
Therefore, I request that you cancel my PMI immediately and adjust my monthly mortgage payments accordingly. I appreciate your assistance in this matter.
Thank you for your attention to this matter.
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) due to an overpayment of my mortgage. As you may know, I have been paying more than the required monthly mortgage payments, which has resulted in my building up a significant amount of equity in the property.
Therefore, I request that you cancel my PMI immediately and adjust my monthly mortgage payments accordingly. I appreciate your assistance in this matter.
Thank you for your attention to this matter.
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) due to a divorce settlement. As you may know, my ex-spouse and I have agreed to a property settlement that involves my gaining sole ownership of the property.
Therefore, I request that you cancel my PMI immediately and adjust my monthly mortgage payments accordingly. I appreciate your assistance in this matter.
Thank you for your attention to this matter.
Dear [Lender’s Name],
I am writing to request the cancellation of my PMI (Private Mortgage Insurance) due to a loan modification. As you may know, I have applied for a loan modification to make my mortgage payments more affordable.
Therefore, I request that you cancel my PMI immediately and adjust my monthly mortgage payments accordingly, based on the new loan modification agreement. I appreciate your assistance in this matter.
Thank you for your attention to this matter.
If you are looking to cancel your Private Mortgage Insurance (PMI), you can do so by writing a cancellation request letter to your lender. Here are some tips to help you write the perfect PMI cancellation request letter template:
1. Begin with a polite tone: When writing a PMI cancellation request letter, you should start with a polite tone. Remember, the lender is not obliged to cancel your PMI, but they might consider it if you request it in a polite and professional manner.
2. Provide a reason: In your letter, you should provide a reason why you are requesting the cancellation of your PMI. It could be that you have already paid off a significant portion of your mortgage, or your property has increased in value. Whatever the reason, make sure it is clear and concise.
3. Include your loan details: You should include your loan details in the letter, such as your loan number, the date the loan was obtained, and the mortgage amount. This will help the lender identify your loan and process your request quickly.
4. Provide evidence: If you are requesting the cancellation of PMI because you have paid off a significant portion of your mortgage, you should provide evidence of this. You can include your loan payment history or a recent appraisal of your property to show that you have met the lender’s criteria for cancelling PMI.
5. End with a request: Finally, you should end the letter with a clear request for the cancellation of your PMI. You can ask for confirmation of the cancellation and a refund of any premiums paid after the cancellation date. Be sure to include your contact details so that the lender can get in touch with you if necessary.
By following these tips, you can create a professional PMI cancellation request letter that will increase your chances of having your request approved by the lender.
PMI, or Private Mortgage Insurance, is a type of insurance that protects lenders in case the borrower defaults on their mortgage payments.
If you put down less than 20% as a down payment on your home, most lenders will require PMI.
You can request to have your PMI cancelled once you’ve reached 20% equity in your home or have paid your mortgage down to 80% of the original appraised value.
A PMI cancellation request letter should include your name, address, loan number, and a statement requesting that your PMI be cancelled. You should also include evidence that you’ve reached the equity or loan balance thresholds required for PMI cancellation.
You should send your PMI cancellation request letter to your loan servicer via certified mail with a return receipt requested to ensure that it’s received and processed.
It can take up to 45 days to process your PMI cancellation request, but it’s important to follow up with your loan servicer to ensure that the cancellation is processed in a timely manner.
If you have an FHA loan, your PMI will be cancelled automatically once you’ve reached 78% loan-to-value ratio based on the original value of your home. However, with other types of loans, you’ll need to request the cancellation of your PMI.
It’s been a pleasure writing about PMI cancellation request letter template for you all. I hope this article helped you in drafting your perfect letter. If you’re still struggling or have any issues, feel free have a chat with your lender. Don’t forget to drop your comments on how this article was helpful to you guys and share it with your friends who might find it useful. You can always come back for more informative content. Thank you so much for reading, until next time, Cheers!
