A PMI cancellation letter is a written request asking your mortgage servicer to end private mortgage insurance on your loan. Use the template below to identify your loan, state that you are requesting cancellation, and ask the servicer to confirm the eligibility requirements and effective date in writing.
What PMI Is and Why Cancellation Matters
Private mortgage insurance, usually called PMI, is commonly required on a conventional mortgage when the borrower makes a smaller down payment. It protects the lender—not the homeowner—if the borrower stops making payments. PMI is generally a separate cost included in the monthly mortgage payment, although the way it is charged can vary. A request to cancel it is therefore different from paying off the mortgage or changing the interest rate.
For many covered conventional loans, federal rules provide a route to request cancellation, and they also provide for automatic termination at a later point if the borrower meets the conditions. The details depend on the loan, its payment history, the property, and the applicable rules. The servicer that collects your payments can tell you which requirements apply and how it handles the request.
“PMI” is also sometimes used loosely to describe other mortgage-related insurance or fees. Federal Housing Administration mortgage insurance premiums (MIP), for example, follow different rules, and a loan with lender-paid PMI may not have a separately billed premium that can be removed in the same way. Confirm the type of coverage before sending a cancellation request.
When You May Request Cancellation
For a covered mortgage, a borrower can generally request cancellation when the loan balance is scheduled to reach 80% of the property’s original value, or has reached that level through payments. “Original value” is generally based on the lower of the purchase price or the appraised value at the time of a purchase loan; for a refinance, it generally refers to the appraisal value used when the loan was made. Your servicer can confirm the figure it uses for your loan.
Reaching the 80% threshold does not always mean coverage ends automatically that day. For a borrower-requested cancellation, the servicer may require that you make the request in writing, be current on payments, have a satisfactory payment history, and have no subordinate lien on the home. It may also require evidence that the property’s value has not fallen below its original value. The precise documentation and review process can vary, so ask the servicer before ordering an appraisal or sending supporting records.
If your home has increased in value or you have made substantial improvements, your current loan balance might be 80% or less of its current value even though it has not reached 80% of its original value. Some servicers or investors may consider cancellation based on current value under their own rules, which can include minimum time in the loan and a new valuation. This is not the same as the standard original-value cancellation route, so do not assume that an online estimate or a recent sale nearby is sufficient proof.
For covered loans, automatic termination generally occurs when the balance is scheduled to reach 78% of original value, provided the borrower is current. A separate final-termination rule generally applies at the midpoint of the loan’s amortization schedule if the borrower is current. These rules have conditions and do not apply in exactly the same way to every mortgage or insurance type. If you believe you have reached a threshold, ask the servicer to explain the calculation and the date it expects coverage to end.
What to Check Before Writing
A little preparation makes the request easier to process and helps avoid asking the servicer to cancel the wrong kind of charge. Check your mortgage statement, closing documents, or online loan account for the following details:
- Insurance type: Confirm that the charge is borrower-paid PMI on a conventional loan, rather than FHA MIP, a USDA fee, or another charge.
- Loan number and servicer address: Use the current payment statement for the correct loan identifier and mailing or upload instructions.
- Original value and current balance: Ask the servicer what original value it has on file and what balance or loan-to-value calculation it uses.
- Payment status: Confirm that payments are current and ask whether the servicer reviews payment history under additional criteria.
- Property or lien changes: Note whether there is a second mortgage, home equity loan, or other lien, and ask whether it affects eligibility.
- Required valuation: Find out whether the servicer needs an appraisal, broker price opinion, inspection, or other evidence—and who may provide it.
Do not rely only on a rough estimate from a property website to establish eligibility. The servicer may use a specific valuation method and may require you to pay for an approved evaluation. Ask about the process and any fee before arranging one.
PMI Cancellation Letter Template
Your name: ________________________________________________
Property address: ___________________________________________
City, state, ZIP: ____________________________________________
Phone or email: ____________________________________________
Date: _____________________________________________________
Servicer name: _____________________________________________
Servicer mailing address: ____________________________________
City, state, ZIP: ____________________________________________
Subject: Request to cancel private mortgage insurance
Mortgage loan number: _______________________________________
Dear Mortgage Servicing Representative:
I am writing to request cancellation of the private mortgage insurance on the mortgage for the property listed above. Please review my loan for eligibility and confirm in writing whether the request can be approved.
Please tell me the original property value and loan balance used for your review, the eligibility requirements that apply to my loan, and any documents or property valuation you require. If a valuation is needed, please explain the approved process and any cost before it is ordered.
If my loan is not currently eligible, please explain the reason, the applicable balance or date for a future review, and whether I may request another review based on current property value or other available criteria.
Please also confirm the decision, the effective date of any cancellation, and how the change will be reflected in my mortgage payment. You may contact me using the information above if additional details are needed.
Sincerely,
Signature: _________________________________________________
Printed name: ______________________________________________
Short fictional sample: Jordan Example, who lives at 14 Cedar Lane, asks the servicer to review loan 00012345 for PMI cancellation. The letter asks the servicer to confirm the original value and balance on file, explain any required valuation, and send the decision and effective date in writing. The names, address, and loan number here are fictional and should not be used as real account details.
The template is intentionally a request for review rather than a claim that a particular loan qualifies. Add any documents the servicer specifically requests, but do not send original records unless the servicer’s instructions require them.
How to Send the Request and Keep a Record
Use the contact method listed on your mortgage statement or the servicer’s official correspondence. Some servicers accept secure online messages or document uploads; others require a signed letter sent to a designated address. If you mail it, consider using a delivery method that lets you confirm arrival. Keep a copy of the signed letter, attachments, delivery confirmation, and any response.
- Ask the servicer for its current PMI cancellation instructions and required form, if it has one.
- Complete the letter with the correct loan and property details, then sign it if required.
- Provide only the requested supporting documents and follow directions for any property valuation.
- Record when and how you submitted the request, and note any case or reference number.
- Follow up if the stated response period passes, or if you receive no confirmation that the request was received.
Continue making the mortgage payment shown on your statement while the request is under review. Do not subtract the PMI amount yourself unless the servicer confirms that the payment has changed; stopping or short-paying a mortgage payment can create a separate account problem. Ask how the servicer will adjust the payment after an approval and whether an escrow account will also be reviewed.
What Happens After You Submit It
The servicer will review the loan information and may ask for records or an approved property valuation. It may approve the request, deny it, or explain that you have not reached the applicable threshold. A response should make clear what decision was made and, if approved, when PMI will stop being charged. Keep that response with your mortgage records and check a later statement to verify that the charge has been removed as described.
Cancellation of PMI does not erase principal, change the interest rate, or automatically reduce every part of a mortgage payment. Your payment may include property taxes, homeowners insurance, escrow adjustments, or other items. If the total payment changes by less or more than expected, compare the statement line by line and ask the servicer to explain the calculation.
Common Problems and Misunderstandings
- Assuming 20% equity always ends PMI: The standard request route is generally tied to 80% of original value and eligibility conditions. A different valuation route, if available, may have separate rules.
- Confusing PMI with FHA MIP: The terms are often mixed up in casual conversation, but FHA mortgage insurance follows different requirements. Ask what coverage is actually listed on your loan.
- Expecting an instant decision: The servicer may need to verify payment history, liens, balance, or property value. Ask for an estimate of the review process and respond promptly to document requests.
- Ordering an appraisal without approval: A valuation obtained independently may not meet the servicer’s requirements. Get its instructions first.
- Assuming approval changes the payment immediately: The effective date and billing adjustment may not match the date you sent the letter. Follow the servicer’s written instructions and keep paying the billed amount until it changes.
- Using a generic letter when a required form exists: A plain letter is a useful starting point, but the servicer may require its own form or a particular submission channel.
If the servicer’s decision is unclear, ask for the reason in writing and request the calculation or rule it relied on. If your circumstances raise a legal or financial issue beyond a routine cancellation request, ask a qualified professional for guidance.
Frequently Asked Questions
Can I request PMI cancellation by phone?
You can call to ask about eligibility and the servicer’s process, but a written request may be required for a formal borrower-initiated cancellation. Ask whether the call counts as a request and, if not, where to send the signed letter.
Does PMI automatically come off when my balance reaches 80%?
Not necessarily. The 80% point is generally associated with a borrower’s right to request cancellation on a covered loan, subject to applicable conditions. Automatic termination generally follows a separate 78% scheduled-balance rule for covered loans when the borrower is current.
Can increased home value qualify me to cancel PMI?
It may be considered under some servicer or investor policies, but it is not guaranteed by simply showing an estimated current value. Ask whether a current-value review is available, how long you must have had the loan, and what valuation method is accepted.
Will PMI cancellation lower my mortgage payment?
It should remove the PMI charge once cancellation takes effect, but the total payment can also include taxes, homeowners insurance, escrow changes, and other amounts. Check a later statement and ask the servicer to explain any difference.
What if my loan has FHA mortgage insurance?
FHA MIP is not the same as conventional borrower-paid PMI, and its cancellation rules depend on the loan and applicable FHA requirements. Contact the servicer to identify the coverage and ask what rules apply to your loan.