Easy Steps to Use a PMI Cancellation Letter Template and Save on Mortgage Insurance

Are you tired of paying private mortgage insurance (PMI) every month? It can feel like an unnecessary expense, especially when you’ve built up a significant amount of equity in your home. Luckily, cancelling your PMI is possible, and it’s a lot easier than you might think.

One of the first things you should do before cancelling your PMI is to send a PMI cancellation letter to your lender. This letter will officially notify your lender that you’re requesting the cancellation of PMI and outline the reasons why. But what should you include in this letter?

To make your life easier, we’ve compiled a list of PMI cancellation letter templates that you can use as a guide. These templates are downloadable and editable, so you can adjust them to include your specific details.

By using these templates, you’ll save time and effort in crafting a PMI cancellation letter from scratch. You’ll also have peace of mind knowing that you’ve included all the necessary information for your lender to cancel your PMI.

So, what are you waiting for? Download our PMI cancellation letter templates today and start the process of cancelling your PMI. You’ll be one step closer to saving money each month and enjoying the benefits of homeownership without the added expense of PMI.

The Best Structure for PMI Cancellation Letter Template

When you’re ready to cancel your private mortgage insurance (PMI), it’s important to do it the right way. One of the best ways to do this is by using a well-structured PMI cancellation letter template. A good template will help you convey your request effectively while ensuring that you provide all the necessary information.

Here’s how you should structure your PMI cancellation letter:

1. Introduction
Start your letter by introducing yourself and your mortgage servicer. Mention your loan number, property address, and the date of your PMI cancellation request. This should make it clear what the letter is about and who it is addressed to.

2. Request for PMI cancellation
Clearly state that you are requesting your PMI to be cancelled. You can also mention how much you’ve paid so far in PMI premiums, along with the estimated timeframe when the balance should hit 80% or less. This helps the lender understand your calculation and how you arrived at the decision to cancel.

3. Evidence of equity
Provide evidence of your home’s current value. You can do this by including a recent appraisal or a comparative market analysis (CMA) done by a real estate agent. Make sure to mention that the value exceeds the original purchase price and that you have met all the payment requirements under the Homeowners Protection Act (HPA).

4. Conclusion
In the concluding paragraph, reiterate your request to cancel your PMI. You can also include your contact information in case the servicer needs to reach you for any additional information.

Using this structure for your PMI cancellation letter template will help you get your point across more effectively. Be sure to proofread your letter and make any necessary edits before sending it. With a well-structured letter, you can expect a prompt response from your lender.

7 Sample PMI Cancellation Letter Templates

Medical Condition

Dear PMI,

I am writing to request the cancellation of my PMI policy as I am currently experiencing a medical condition that makes it difficult for me to continue making payments. Due to the circumstances, I am no longer able to maintain my financial obligations.

I have attached all documents related to my condition for your reference. I hope you understand that this was not premeditated and I had no choice.

Please do the needful at the earliest. If there are any fees or charges involved, please notify me at your earliest convenience.

Thank you for your understanding during this time.


Financial Hardship

Dear PMI,

I regret to inform you that I must cancel my PMI policy due to financial hardship. I have been struggling to make the payments on my PMI policy and have fallen behind, making it impossible for me to continue.

I have tried to make arrangements with the bank to no avail, and I do not see a way to recover. I have enclosed all relevant financial documents for your reference in the attached file.

I request that you cancel my PMI policy as soon as possible and let me know of any fees involved.

Thank you for your cooperation.


Property Value Increase

Dear PMI,

I am writing to request the cancellation of my PMI policy. I understand that the equity in my property has increased and that I am no longer required to make PMI payments.

I have attached a current appraisal of my property to support my request. To make the procedure quicker and more efficient, please let me know the conditions of cancelling my PMI policy and any fees that may apply.

Thank you for your cooperation in this matter.


Maturity of Loan

Dear PMI,

I am writing to request the cancellation of my PMI policy. I have recently completed all the required payments on my home loan, and my mortgage is cleared of all obligations.

To the best of my knowledge, I am no longer obligated to pay PMI. For completeness, I am attaching proof of the loan’s maturity and settlement.

Please let me know the process of cancelling my PMI policy and any fees involved.

Thank you for your cooperation.



Dear PMI,

I am currently refinancing my home loan and no longer require PMI coverage. I have already secured a new mortgage that does not require PMI. As a result, I am requesting that you cancel my PMI policy.

Attached is documentation of the new mortgage and the refinancing process.

Please let me know the steps required to cancel my PMI policy and any related fees.

Thank you for your prompt attention.


Sale of Property

Dear PMI,

With regret, I must request the cancellation of my PMI policy. I have sold my property and I will no longer need PMI coverage.

I have attached the necessary documents to complete the cancellation process.

Please let me know the procedure to follow for cancellation and any penalties involved.

Thank you for your assistance in this matter.


Unsatisfactory Service

Dear PMI,

I am writing to request the cancellation of my PMI policy. I have encountered several unsatisfactory experiences with the service that you provide and I am dissatisfied with the coverage that I have received.

I would prefer to seek services elsewhere. I am attaching documentation of my complaints for your review.

Please let me know the necessary steps to follow in order to cancel my PMI policy and any fees involved.

Thank you for your consideration.


Tips for Writing a PMI Cancellation Letter Template

Private mortgage insurance (PMI) is required by most lenders if a borrower puts down less than 20% of the home’s value as a down payment. Once the borrower reaches 20% equity, they can request to have PMI cancelled. Here are some tips for writing a PMI cancellation letter template:

1. Know the lender’s requirements. Different lenders have different requirements for PMI cancellation. Before writing the letter, make sure to understand the lender’s specific requirements for cancellation. This information can typically be found in the loan documents or on the lender’s website.

2. State the purpose of the letter. The letter should clearly state that the borrower is requesting PMI cancellation. The opening paragraph should state the purpose of the letter and be concise and straightforward.

3. Provide proof of 20% equity. The letter should include documentation that proves the borrower has reached 20% equity. This could include a recent appraisal or evidence of payments made toward the principal balance of the loan.

4. Be professional and courteous. Remember that the goal of the letter is to make a request, not demand a response. The tone of the letter should be polite and professional.

5. Include contact information. The letter should include the borrower’s contact information, including name, address, phone number, and email address. This will make it easier for the lender to respond to the request.

6. Proofread carefully. Before sending the letter, proofread it carefully to ensure that there are no errors or typos. A letter that is poorly written or contains errors could be viewed as unprofessional and hurt the borrower’s chances of getting the PMI cancelled.

7. Follow up if necessary. If the borrower does not receive a response to the PMI cancellation letter, they should follow up with the lender to ensure that the request was received and is being processed.

Writing a PMI cancellation letter template can be straightforward if the borrower follows these tips. By being clear, professional, and courteous, the borrower can increase their chances of getting their PMI cancelled and saving money on their monthly mortgage payments.

PMI Cancellation Letter Template FAQs

What is a PMI cancellation letter?

A PMI cancellation letter is a request made by a homeowner to their lender when they believe they have reached 20% equity in their home. This letter requests that the lender cancel payment for Private Mortgage Insurance (PMI).

What information should be included in a PMI cancellation letter?

A PMI cancellation letter should include the homeowner’s name, address, and loan reference number. It should also include a request for the lender to cancel the homeowner’s PMI and a statement of why the homeowner believes their equity has reached or exceeded 20%. Any necessary documentation should also be included, such as an appraisal report or payment history.

What should be done if the lender does not respond to the PMI cancellation letter?

If the lender does not respond to the PMI cancellation letter within a reasonable amount of time, the homeowner should follow up with the lender to confirm that the letter was received and request a response. If the lender still does not respond, the homeowner may need to seek legal advice or file a complaint with regulatory agencies.

Is there a specific timeline for canceling PMI?

Yes, there is a timeline for canceling PMI. For most loans, PMI can be canceled once the homeowner has paid down the loan to 78% of the original purchase price. If the homeowner has made additional payments or their property value has increased, they may be able to request PMI cancellation earlier. It is important to check the loan agreement and contact the lender for specific details.

Can PMI be canceled on its own, or does it require a complete refinancing of the mortgage?

PMI can be cancelled on its own, it does not require refinancing the mortgage. A homeowner can request to have their PMI payments cancelled once they have met the equity requirement. Refinancing the mortgage can be another option to remove PMI, but it is not necessary.

What is the difference between PMI and MIP?

PMI, or Private Mortgage Insurance, is required on conventional loans and is typically cancelled once a homeowner reaches 20% equity in their home. MIP, or Mortgage Insurance Premium, is required on FHA loans and is paid throughout the life of the loan. FHA borrowers may be able to have their MIP cancelled once they meet certain criteria, such as reaching 78% loan-to-value or making payments for at least 5 years.

Are there any fees associated with cancelling PMI?

There may be fees associated with cancelling PMI. The lender may require the homeowner to pay for an appraisal to confirm their property value, or other administrative fees. It is important for homeowners to check their loan agreement and contact their lender for specific information.

Wrap it up

We hope that this article about the PMI cancellation letter template proved to be a useful resource for you. Remember, it’s always a good idea to keep track of your finances, review your options, and know when it’s time to cancel your mortgage insurance. Thanks for reading and we hope to see you again soon for more valuable insights and tips!