How do I write a letter to request PMI removal?
Writing a letter to request Private Mortgage Insurance (PMI) removal is an important step for homeowners who have reached a certain level of equity in their homes. PMI is an additional insurance policy that protects the lender in case the borrower defaults on the loan. However, once you have accumulated enough equity in your home, you can request to have PMI removed. Here’s a step-by-step guide on how to write a letter to request PMI removal.
1. Start with a formal salutation
Begin your letter with a formal salutation addressed to the loan officer or the customer service department of your mortgage lender. For example:
“Dear [Loan Officer’s Name],”
or
“To Whom It May Concern,”
2. Introduce yourself and provide relevant information
In the first paragraph, introduce yourself as the borrower and provide your full name, account number, and the date of your mortgage. Mention the type of mortgage you have (e.g., conventional, FHA, VA) and the date you took out the loan. For example:
“I am writing to request the removal of Private Mortgage Insurance (PMI) from my mortgage account. My full name is [Your Full Name], and my account number is [Account Number]. I took out a [Type of Mortgage] loan on [Date of Loan].”
3. Explain the reason for your request
In the second paragraph, explain why you are requesting PMI removal. Typically, this is because you have reached a certain level of equity in your home. Provide the current value of your home and the remaining balance on your mortgage. For example:
“I have recently reviewed my mortgage statement and calculated that I have reached [Percentage of Equity] equity in my home. According to the guidelines set forth by the Federal Housing Finance Agency (FHFA), I am eligible to have my PMI removed from my mortgage. The current value of my home is [Home Value], and the remaining balance on my mortgage is [Remaining Balance].”
4. Provide supporting documentation
In the third paragraph, mention any supporting documentation you have provided or plan to provide to support your request. This may include a home appraisal, a statement from your real estate agent, or a letter from your homeowner’s insurance company. For example:
“I have attached a copy of the home appraisal report that confirms the current value of my home. Additionally, I have provided a statement from my real estate agent verifying the current market value of my home. I am also in the process of obtaining a letter from my homeowner’s insurance company to confirm that I have adequate coverage.”
5. Request PMI removal
In the fourth paragraph, formally request PMI removal and specify the desired date for the change to take effect. For example:
“I kindly request that you remove Private Mortgage Insurance (PMI) from my mortgage account effective [Desired Date]. I believe this change will help reduce my monthly mortgage payment and provide me with additional financial flexibility.”
6. Provide contact information
In the final paragraph, provide your contact information so that the lender can reach out to you if they need additional information. For example:
“If you have any questions or require further information, please do not hesitate to contact me at [Your Phone Number] or [Your Email Address].”
7. Close the letter
End your letter with a formal closing, such as:
“Sincerely,”
or
“Best regards,”
Followed by your full name.
By following these steps, you can write a clear and concise letter to request PMI removal from your mortgage. Remember to keep your letter professional and to provide all necessary documentation to support your request.
