Looking to cancel your mortgage insurance? You’re not alone – many homeowners are seeking ways to reduce their monthly expenses and eliminate unnecessary insurance coverage. Fortunately, cancelling your mortgage insurance can be a simple and straightforward process, with the help of a well-written letter of request.
To help you get started, we’ve put together a sample letter of request for cancellation of mortgage insurance that you can use as a template. Whether you’re looking to cancel private mortgage insurance (PMI) or mortgage insurance premium (MIP) from an FHA loan, our sample letter will provide you with a guideline to follow.
It’s important to note that each lender may have specific requirements and procedures for cancelling mortgage insurance, so we recommend consulting with your lender before sending the letter. However, our sample letter can be adapted to suit your individual needs and circumstances.
So, without further ado, check out our sample letter of request for cancellation of mortgage insurance below. We hope it helps you achieve your financial goals!
The Best Structure for a Letter of Request for Cancellation of Mortgage Insurance
Cancellation of mortgage insurance is a request that homeowners make to terminate their mortgage insurance premiums. Mortgage insurance is a type of insurance that protects lenders when a borrower defaults on their home loan. Upon obtaining a certain level of equity, homeowners have the option to eliminate mortgage insurance. As a result, writing a letter of request for cancellation of mortgage insurance requires attention to detail, proper structure, and concise language to ensure the request is approved.
The first paragraph in your letter should state your purpose for writing the letter. Be clear and brief, identifying the type of mortgage insurance you have and stating that you want to cancel it. You should include the date and your loan number in this paragraph as well.
The second paragraph is the body of your letter. This is where you will provide a detailed explanation of why you are requesting the cancellation of your mortgage insurance. Here, you need to explain that you have reached a certain level of equity in your home, meaning that you no longer need to pay premiums for mortgage insurance. You can also mention that you have been paying premiums consistently and on-time to support your request. Be sure to include any supporting documentation, such as copies of your mortgage statements, to demonstrate your case better.
The final paragraph should acknowledge the next steps in the cancellation process and express your appreciation for the service provided by your lender. Include a request for confirmation of the cancellation and any other instructions or details you need to know. The closing must sound courteous and respectful to show that you have read and understood their policies and that you are expecting a favorable response. Sign off with your name and contact details in case of any further correspondence or clarification.
In conclusion, a well-structured letter for requesting the cancellation of mortgage insurance should contain a clear purpose statement, a detailed paragraph explaining your reasons for the request, and a polite concluding paragraph. Ensure that all necessary documentation is attached for additional support. By following this structure and using clear language, your letter will have a greater chance of success in getting your mortgage insurance canceled.
7 Samples of Request Letter to Cancel Mortgage Insurance
Sample 1: Moving to a New House
Greetings!
I hope this letter finds you well. I’m writing to request the cancellation of my mortgage insurance because I’m planning to move to a new house soon. Due to this, I no longer need the coverage provided by the policy.
I’ve been a loyal customer, and I don’t want to discontinue my relationship with the company. However, I am confident that I won’t require the insurance after the cancellation date that we arrange. I appreciate the assistance that you’ve given me in the past and your understanding of my current situation.
Thank you for your consideration.
Sincerely,
[Your name]
Sample 2: Loan Paid In Full
Hello!
I’m writing to request the cancellation of my mortgage insurance because my mortgage loan has been paid in full. I was advised that I would not need to cover the insurance once the balance was cleared, so I would like to request that any additional premiums be promptly refunded to me.
I want to acknowledge the friendly service that I’ve received over the years and the comfort that the insurance provided me. I understand that, in certain circumstances, mortgage insurance is necessary, but I no longer need it. Thank you for your assistance in the past.
Thank you again!
Best regards,
[Your name]
Sample 3: Refinancing of the Mortgage Loan
Dear [Name of the insurance company representative],
I hope this letter finds you doing well. I’m writing to request the cancellation of my mortgage insurance policy due to refinancing of my mortgage loan. As a result of the refinancing, my mortgage loan is no longer insured by the previous insurance policy, and I’m being covered by a new policy.
I understand that mortgage insurance is important to safeguard my financial interest if anything unforeseen happens, but I’m confident that the new insurance policy will provide me with better coverage. I appreciate all the help that you’ve given me, and I’m grateful for the service that I’ve received over the years.
Thank you for your attention to this matter.
Sincerely,
[Your name]
Sample 4: Death of a Spouse
Dear [Name of the insurance company representative],
I hope this letter finds you well. I’m writing to request the cancellation of my mortgage insurance policy due to the death of my spouse. After my spouse’s passing, I was forced to sell the property, so the mortgage is no longer active, and therefore, I no longer require mortgage insurance coverage.
I appreciate all the assistance I’ve received during this time of bereavement, and thank you for being understanding of my situation. I hope to work with you again in the future if the need arises.
Thank you for your prompt attention.
Best regards,
[Your name]
Sample 5: Cancellation Upon Payment of Cancellation Fee
Dear [Name of the insurance company representative],
I hope this letter finds you doing well. I’m writing to request cancellation of my mortgage insurance policy effective immediately. I understand that cancelling the policy requires me to pay a cancellation fee, so I’m enclosing the required payment with this letter.
I appreciate the coverage provided by this policy, but due to changes in my financial situation, I’m no longer able to afford the monthly premiums. I hope to rejoin the policy again in the future, once the situation improves.
Thank you for your timely and efficient service in the past.
Sincerely,
[Your name]
Sample 6: Sale of Property
Dear [Name of the insurance company representative],
I hope this letter finds you doing well. I’m writing to request cancellation of my mortgage insurance policy as I have sold the property and paid off the remaining mortgage balance in full. Hence, the property is no longer under mortgage, and I no longer require insurance coverage for the mortgage.
I appreciate the reliability and support that I received from your company. I would like to thank you for the diligent service in the handling of my insurance policy over the years.
Thank you for your attention to this matter.
Best regards,
[Your name]
Sample 7: Dropping Mortgage Insurance to Build Equity Faster
Dear [Name of the insurance company representative],
I’m writing to request cancellation of my mortgage insurance policy effective immediately. I want to cancel this insurance coverage to build equity in my home faster. I’ll need the additional funds to renovate my home and upgrade it. I’m confident that without this insurance, I’ll be able to save more money and put it towards improvements to my home.
I want to thank you for all the assistance that I’m sure has helped many people. It’s been my pleasure doing business with your company, and I hope to continue in the future.
Thank you and regards,
[Your name]
Tips for Requesting Cancellation of Mortgage Insurance
When requesting cancellation of your mortgage insurance, there are a few tips to keep in mind to ensure a successful outcome:
- Know your rights: Familiarize yourself with the Homeowners Protection Act and your mortgage’s terms to understand when you are eligible for cancellation.
- Gather appropriate documentation: Obtain a copy of your loan agreement, payment history and current loan balance before submitting your request.
- Be prepared to make a case: Provide a detailed explanation of why you believe you are eligible for cancellation, highlighting factors such as a significant increase in property value, principal payments made or improvements made to your home.
- Be persistent: If your request is initially denied, don’t give up. Follow up with your lender and provide additional documentation or explanations if necessary.
- Consider refinancing: If your lender is unwilling to cancel your mortgage insurance, explore refinancing options with other lenders that may offer better terms.
By following these tips, you can increase your chances of successfully requesting cancellation of your mortgage insurance. Remember to be organized, thorough and persistent in your efforts, and always keep your home’s best interests top of mind.
FAQs about Sample Letter of Request for Cancellation of Mortgage Insurance
What is a sample letter of request for cancellation of mortgage insurance?
A sample letter of request for cancellation of mortgage insurance is a written request addressed to an insurance provider asking them to cancel their mortgage insurance policy attached to a mortgage loan.
Why would I need to write a letter to request cancellation of my mortgage insurance?
If you have a mortgage insurance policy attached to your mortgage loan, you may want to cancel it to reduce your monthly payments or to decrease the total amount of money you owe in the long-term. Writing a letter of request is the standard way to handle the cancellation process.
What should be included in a sample letter of request for cancellation of mortgage insurance?
Your letter should include information about your mortgage loan and the mortgage insurance policy, a clear statement of your intention to cancel the policy, and a request for confirmation of cancellation.
When should I send my sample letter of request for cancellation of mortgage insurance?
You should send your letter of request as soon as you’ve made the decision to cancel your mortgage insurance policy. It’s always best to communicate with your insurance provider as soon as possible so that they can start processing your request without any unnecessary delays.
How do I write a convincing letter of request for cancellation of mortgage insurance?
To write a persuasive letter, make sure you highlight the benefits of cancelling your mortgage insurance policy and explain why it’s in the best interest of both you and the insurance company. Be clear and concise, and provide any necessary documentation to support your request.
What should I do if my insurance provider denies my request for cancellation?
If your request is denied, you have several options. You can try to negotiate with them, file a complaint with regulatory bodies, or consider refinancing your mortgage loan with another lender who offers better insurance options.
Do I need a lawyer to write my sample letter of request for cancellation of mortgage insurance?
No, you don’t need a lawyer to write your letter. You can use online templates or follow guidelines from your insurance provider to format your letter correctly.
Happy Cancellation!
Now that you have a better understanding of how to write a letter requesting the cancellation of mortgage insurance, you can say goodbye to those pesky monthly payments. Remember to include all necessary details and send your letter to both your lender and insurance provider. Thanks for reading, and come back soon for more life tips and tricks!