PMI cancellation letter 2024 (guide + free template)

A PMI cancellation letter is a written request sent by a homeowner to their mortgage lender asking to stop the requirement for Private Mortgage Insurance (PMI).

PMI is typically required when a homeowner makes a down payment of less than 20% of the home’s purchase price.

It’s a type of insurance that protects the lender in case the homeowner defaults on the mortgage.

Here is how it works

Once a homeowner has built up enough equity in their home (usually by paying down the mortgage balance or due to home value appreciation), they may reach a point where the loan-to-value ratio (the mortgage amount divided by the home’s value) drops below 80%.

At this stage, the homeowner can ask the lender to cancel the PMI requirement, which often involves sending a PMI cancellation letter as a formal request.

This letter usually includes information about the homeowner’s payment history, the current value of the home, and other relevant details to support the request for PMI cancellation.

In this post, I will teach you how to write an effective PMI cancellation letter and share some templates and samples to help you get started.

Let’s dive right into it!

Read also: PMI cancellation letter Wells Fargo

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How to write an effective PMI cancellation letter

Writing an effective PMI cancellation letter involves clear communication, proper documentation, and a polite yet assertive tone.

Here’s a step-by-step guide to help you write an effective PMI cancellation letter;

Use the Correct Format

Format the letter as a formal business letter.

Include your contact information, the date, the recipient’s name and address, a formal salutation, and a closing signature.

Be Clear and Concise

State your purpose for writing right away.

Clearly explain that you are requesting the cancellation of PMI due to reaching the required loan-to-value ratio.

Provide Relevant Information

Include important details such as your full name, property address, loan account number, and the date your mortgage originated.

This helps the lender identify your account easily.

Document Your Case

Attach necessary documents that support your request, such as a recent appraisal report showing your home’s current value and evidence of your consistent mortgage payment history.

Mention Compliance with Requirements

Reference the Homeowners Protection Act of 1998, which outlines the guidelines for PMI cancellation.

Make sure to explain how you meet the criteria for cancellation.

Request Action

Politely request the lender’s assistance in cancelling the PMI.

Mention that you understand there might be a formal process and that you’re willing to provide any additional information required.

Provide Contact Information

Include your phone number and email address, so the lender can easily reach you if they need further information.

Express Appreciation

Thank the lender for their attention to this matter and express your gratitude for their cooperation.

Polite and Professional Tone

Maintain a polite and professional tone throughout the letter. Avoid using aggressive language or making demands.

Be Firm but Respectful

While being assertive about your request, maintain a respectful tone.

Remember that the lender’s cooperation is crucial in this process.

Follow Up

If you don’t receive a response within a reasonable time, follow up with the lender.

A polite follow-up can help ensure your request is being addressed.

PMI cancellation letter template

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Date]

[Loan Servicer’s Name]
[Loan Servicer’s Address]
[City, State, ZIP Code]

Subject: Request for Private Mortgage Insurance (PMI) Cancellation

Dear [Loan Servicer’s Name],

I am writing to formally request the cancellation of the Private Mortgage Insurance (PMI) on my mortgage account [Loan Account Number] for the property located at [Property Address].

I have been diligently making payments on my mortgage since [Date of Mortgage Origination], and I believe that I have reached the point where the loan-to-value ratio of my home has dropped below 80%, making me eligible for PMI cancellation according to the guidelines set by the Homeowners Protection Act of 1998.

To support this request, I have enclosed the following documents:

1. Recent appraisal report: [Attach a copy of the appraisal report highlighting the current value of the property.]
2. Payment history: [Include a summary of your mortgage payment history, showing consistent and timely payments.]
3. Loan balance statement: [Include a statement showing the current outstanding balance on your mortgage.]

Based on my calculations and the information provided, my loan-to-value ratio has fallen below the required threshold for PMI coverage. I kindly request that you initiate the necessary steps to cancel the PMI on my mortgage account. I understand that there might be a formal process involved, and I am more than willing to provide any additional information or documentation required to facilitate this process.

Please confirm in writing once the PMI has been cancelled and provide me with any further instructions or documentation I may need to retain for my records.

I appreciate your prompt attention to this matter. Thank you for your cooperation in making this transition as smooth as possible. If you have any questions or need any further information, please do not hesitate to contact me at [Your Phone Number] or [Your Email Address].

Sincerely,

[Your Signature]
[Your Printed Name]

Enclosures: [List the documents you are including with the letter, such as the appraisal report and payment history.]

PMI cancellation letter sample

Mortgage Services Inc.
123 Mortgage Avenue
Cityville, CA 56789

Subject: Request for Private Mortgage Insurance (PMI) Cancellation

I am writing to formally request the cancellation of the Private Mortgage Insurance (PMI) on my mortgage account #987654321 for the property located at 456 Oak Street, Cityville, CA 56789.

I have been diligently making payments on my mortgage since June 1, 2015, and I believe that I have reached the point where the loan-to-value ratio of my home has dropped below 80%, making me eligible for PMI cancellation according to the guidelines set by the Homeowners Protection Act of 1998.

To support this request, I have enclosed the following documents:

1. Recent appraisal report: [Attach a copy of the appraisal report highlighting the current value of the property.]
2. Payment history: [Include a summary of your mortgage payment history, showing consistent and timely payments.]
3. Loan balance statement: [Include a statement showing the current outstanding balance on your mortgage.]

Based on my calculations and the information provided, my loan-to-value ratio has fallen below the required threshold for PMI coverage. I kindly request that you initiate the necessary steps to cancel the PMI on my mortgage account. I understand that there might be a formal process involved, and I am more than willing to provide any additional information or documentation required to facilitate this process.

Please confirm in writing once the PMI has been canceled and provide me with any further instructions or documentation I may need to retain for my records.

I appreciate your prompt attention to this matter. Thank you for your cooperation in making this transition as smooth as possible. If you have any questions or need any further information, please do not hesitate to contact me at (555) 123-4567 or example@email.com.

Sincerely,

[Your Signature]
John Doe

Enclosures: Appraisal report, payment history summary, loan balance statement

Read also:

• Insurance cancellation letter
• Homeowners insurance cancellation letter
• USAA insurance cancellation letter
• Health insurance cancellation letter
• Medicare supplement cancellation letter
• Life insurance cancellation letter
• Auto insurance cancellation letter
  • State Farm auto insurance cancellation letter

PMI cancellation letter pdf

PMI cancellation letter word

FAQs about PMI cancellation letter