A “Sample Letter To Request Removal Of PMI” helps you ask your lender to drop your Private Mortgage Insurance. You typically need this letter when your home’s value increases. Or when you’ve paid down your mortgage enough. It’s a formal way to start the PMI removal process.
Want to write this letter but don’t know where to start? We’ve got you covered. We will share templates, examples and samples below. These will make writing the letter easy.
Consider this article your go-to resource. We aim to simplify the letter-writing process. You can quickly tailor our samples to your situation. Get ready to remove PMI and save money!
Sample Letter To Request Removal Of Pmi
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]
[Lender Name]
[Lender Address]
[Lender City, State, Zip Code]
Subject: Request for PMI Removal – [Loan Account Number]
Dear [Lender Contact Person or Department],
I am writing to request the removal of Private Mortgage Insurance (PMI) from my mortgage loan, account number [Loan Account Number], for the property located at [Property Address].
As per the terms of my mortgage agreement and the Homeowners Protection Act, I believe I am now eligible for PMI cancellation or termination. My current loan-to-value (LTV) ratio is below 80% [or 78% for automatic termination], based on [reason for LTV decrease – e.g., original appraisal, recent appraisal, principal payments].
[Choose ONE of these three options, remove the other two:]
[Option 1 – If you believe you have reached 80% LTV based on the original appraisal:] According to my original property appraisal when the loan was originated, the current LTV is now below 80% due to my mortgage payments.
[Option 2 – If you have made significant improvements to the property:] I have made significant improvements to the property which have increased its value, and I would like to request a new appraisal to demonstrate that the current LTV is now below 80%. I am willing to cover the cost of the appraisal.
[Option 3 – If you believe you have reached 78% LTV:] Based on my mortgage payments, I believe my loan has reached 78% of the original property value, making it eligible for automatic PMI termination.
I have consistently made timely mortgage payments and have no history of late payments. I meet all other requirements for PMI removal as outlined in my loan agreement.
I kindly request that you review my account and initiate the process for removing PMI from my mortgage. Please inform me of any required documentation or steps I need to take to expedite this process.
Thank you for your time and consideration. I look forward to hearing from you soon.
Sincerely,
[Your Name]
How to Write Sample Letter To Request Removal Of PMI
Subject Line: Capturing Immediate Attention
- Employ a succinct and persuasive subject line. For instance: “Request for PMI Cessation – [Your Loan Number] “.
- Avoid ambiguity; clarity is paramount.
Salutation: A Formal Overture
- Address the recipient formally. “Dear [Mortgage Company Name] Loan Servicing Department,” is a safe bet.
- If you possess a specific contact, utilize their name for a personalized touch.
Introduction: Setting the Stage with Finesse
- Clearly state your intent upfront. Begin with something like: “I am writing to formally request the removal of Private Mortgage Insurance (PMI) from my mortgage loan, account number [Your Loan Number].”
- Briefly allude to your loan’s current status, establishing a foundation for your entreaty.
Body Paragraph 1: Substantiating Your Eligibility
- Articulate how you meet the criteria for PMI elimination.
- If your loan-to-value (LTV) ratio is at or below 80%, explicitly mention this: “My current LTV ratio is approximately [Your LTV Ratio]%, which satisfies the requisite threshold for PMI termination.”
- Mention any property value appreciation, if applicable, bolstering your claim.
Body Paragraph 2: Reinforcing Your Fiscal Responsibility
- Highlight your impeccable payment history. Emphasize your reliability as a borrower.
- For example: “I have consistently made timely mortgage payments since the inception of this loan, demonstrating fiscal prudence.”
- Mention any significant property improvements that have increased its value.
Supporting Documentation: Bolstering Your Appeal
- Indicate the documents you’re enclosing to fortify your request.
- Examples include: A recent property appraisal, documentation of home improvements, or a current credit report.
- “Enclosed, please find [List of Documents], which substantiate my eligibility for PMI discontinuation.”
Closing: A Courteous Denouement
- Express gratitude for their time and consideration.
- Reiterate your request one last time, ensuring clarity.
- “Thank you for considering my request. I eagerly anticipate a favorable response regarding the ablation of my PMI.”
- End with a formal closing: “Sincerely,” followed by your name, address, phone number, and email address.
Frequently Asked Questions: PMI Removal Request Letters
This section addresses common inquiries regarding the process of writing a sample letter to request the removal of Private Mortgage Insurance (PMI). Understanding these frequently asked questions can streamline your application and improve your chances of success.
1. What information should I include in my PMI removal request letter?
Your letter should include your loan number, property address, contact information, and a clear statement requesting PMI removal based on meeting specific criteria, such as reaching 80% loan-to-value (LTV).
2. To whom should I address the PMI removal request letter?
Address the letter to the mortgage servicer or the department responsible for handling PMI removal requests. Contact your lender to confirm the correct recipient.
3. What documentation should I include with my PMI removal request letter?
Include documentation supporting your claim, such as a recent appraisal indicating your home’s current value and demonstrating you have reached the required LTV.
4. How long does it typically take to process a PMI removal request?
The processing time can vary, but it generally takes several weeks to a few months. Follow up with your lender if you haven’t received an update within a reasonable timeframe.
5. What happens if my PMI removal request is denied?
If your request is denied, ask your lender for the specific reasons for the denial. You may need to address these issues and reapply at a later date or explore other options, such as refinancing.
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