PMI Cancellation Letter Sample Template with Examples [Word]

PMI Cancellation Letter can add a significant amount to your monthly mortgage payment, so many homeowners try to cancel it as soon as they can. 

If you have a private mortgage insurance (PMI) policy on your mortgage loan, it is possible to cancel it and save money on your monthly payments. One way to cancel your PMI is to write a PMI cancellation letter to your mortgage lender. This letter serves as a formal request to cancel your PMI policy. 

Private mortgage insurance, or PMI, is an insurance policy that protects the lender in case the borrower defaults on their mortgage payments. PMI is typically required for borrowers who make a down payment of less than 20% of the home’s value. 

PMI can be canceled in two ways: automatically and by request. 

Automatic cancellation: If you have a conventional mortgage, your lender is required to automatically cancel your PMI once you have paid off 22% of the original loan amount, as long as you are current on your payments. 

Request cancellation: You can also request to have your PMI canceled once you have paid off at least 20% of the home’s original value. You must also be current on your mortgage payments and have a good payment history. 

Sample PMI Cancellation Letter Template with Examples

Templatediy offers a variety of PMI Cancellation Letter templates that are designed to help streamline the process of canceling your Private Mortgage Insurance (PMI). These templates provide detailed instructions on how to write and submit the letter, as well as sample letters to follow. The template also includes an editable form that you can use to request a refund in the event that you have already paid for PMI and want it removed from your loan.  

It’s important to note that FHA loans have different rules for canceling PMI. With an FHA loan, you may be able to cancel your PMI once you have paid off 78% of the original loan amount, but you will need to make a formal request to your lender.