PMI Cancellation Request Letter Sample

In this article, I’m going to guide you through the process of crafting a compelling PMI cancellation request letter, using a template I’ve refined through personal experience.

Key Takeaways

  • Understand PMI: Know when and why you can request cancellation.
  • Check Lender Requirements: Each lender might have specific conditions for PMI removal.
  • Gather Necessary Documents: Prepare all documents to support your PMI cancellation request.
  • Write Clearly and Professionally: Use a concise and respectful tone in your letter.
  • Follow Up: Don’t hesitate to follow up if you don’t receive a response within a reasonable timeframe.

Step 1: Understand Your Eligibility for PMI Cancellation

The first step in writing your PMI cancellation request letter is to confirm that you are indeed eligible to request the removal of this insurance. 

Typically, PMI can be canceled once your mortgage balance falls below 80% of the original value of your home—either due to payments made or an increase in home value. It’s essential to know the specific terms set by your lender, as they can sometimes differ.

Example: In my first experience with PMI cancellation, I had to thoroughly read through my mortgage agreement to find the exact clause related to PMI removal. 

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It stated that aside from my loan balance dropping below 80% of the home’s original value, I also needed to have a consistent payment history without any defaults.

Step 2: Gather the Necessary Documentation

To convince your lender that you meet the requirements for PMI cancellation, you’ll need to provide supporting documentation. This often includes:

  • A recent mortgage statement showing your current mortgage balance.
  • Evidence of the value of your home, which could be a recent appraisal or a comparative market analysis.
  • Payment history to prove that your payments have been timely and consistent.

Real-Life Tip: Always opt for a professional appraisal as part of your documentation if your home value has significantly increased. 

This was a game-changer in my case, where the increased home value pushed the equity over the 20% threshold much quicker than expected.

Step 3: Write the PMI Cancellation Request Letter

Now, let’s get to the actual writing part. Your PMI cancellation request letter should be straightforward and professionally written. Include the following:

  1. Introduction: Start with your name, address, and loan number.
  2. Purpose of the Letter: Clearly state that the purpose of the letter is to request the cancellation of PMI.
  3. Supporting Information: Briefly summarize why you believe you qualify for PMI cancellation.
  4. Document List: List the documents you are including as evidence.
  5. Conclusion: Politely request prompt processing of your PMI cancellation and mention that you look forward to their confirmation.

Template for PMI Cancellation Request Letter:

[Your Name]
[Your Address]
[City, State, Zip Code]

[Loan Servicer Name]
[Company Address]
[City, State, Zip Code]

Re: Request for Cancellation of Private Mortgage Insurance
Loan Number: [Your Loan Number]

Dear [Loan Servicer],

I am writing to request the cancellation of the Private Mortgage Insurance (PMI) associated with my mortgage loan mentioned above. According to my understanding of the terms of my mortgage agreement and recent assessments of my payment history and home value, I believe I now meet the requirements for PMI removal.

Enclosed are the following documents for your review:
– A recent mortgage statement indicating my current loan balance.
– Documentation demonstrating the current value of my property.
– A record of my mortgage payment history.

I kindly request that you process this cancellation at your earliest convenience. Please confirm receipt of this request and inform me of any additional requirements or next steps.

Thank you for your attention to this matter. I look forward to your prompt response.


[Your Signature (if sending a hard copy)]
[Your Printed Name]

Step 4: Submit the Letter and Follow Up

After you’ve crafted your letter, submit it to your lender either via email or certified mail. If you send it by mail, opt for a method that provides a delivery confirmation. This way, you can ensure it was received.

Example: In my experience, following up two weeks after submission was effective. It helped keep my request on track and demonstrated my seriousness about the cancellation.

Step 5: Handle Any Follow-Up

Sometimes, your lender might request additional information or documentation. Be prepared to respond promptly to any requests. Keeping a cooperative and proactive stance can facilitate a smoother process.

Real-Life Example: Once, I had to provide additional proof of home improvements that increased the property’s value. Having that documentation ready sped up the PMI cancellation process.

By following these steps, you can write a PMI cancellation request letter that is clear, professional, and likely to succeed. Remember, every penny counts when it comes to your mortgage, and canceling your PMI can lead to significant monthly savings. Good luck!

Frequently Asked Questions (FAQs)

Q: How do I know when I can request PMI cancellation? 

Answer: From my experience, you can typically request PMI cancellation once your mortgage balance falls below 80% of the original value of your home. Always check your mortgage agreement for specific details, as lenders might have unique requirements.

Q: What documents do I need to include with my PMI cancellation request letter? 

Answer: When I submitted my PMI cancellation request, I included a recent mortgage statement, an appraisal report showing an updated higher property value, and a record of my mortgage payment history to demonstrate consistent payments.

Q: How long does it take for a PMI cancellation request to be processed?

Answer: Based on my interactions, the processing time can vary, but generally, lenders take about 30 to 60 days to process a PMI cancellation request. It’s a good idea to follow up if you haven’t received a response within this timeframe.

Q: Can I request PMI cancellation before reaching 20% equity if my home’s value increases?

Answer: Absolutely, I’ve successfully requested early PMI cancellation after a significant increase in my home’s value. You’ll need a new appraisal to prove the increased value and meet your lender’s equity threshold.

Q: What should I do if my lender denies my PMI cancellation request?

Answer: In my case, when initially denied, I requested a detailed explanation of the denial, reviewed my loan agreement for compliance, and gathered additional supporting documents to resubmit my request. Persistence and correct documentation are key.

Q: Is it necessary to get a professional appraisal for PMI cancellation?

Answer: From what I’ve learned, while not always mandatory, obtaining a professional appraisal can strongly support your case, especially if there’s a significant difference between the original value and the current market value of your property.

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