Mortgage Calculator | Credit Cards iconSmall Business | Your Money | Construction | Entrepreneur | Student Loan

money smart personal finances HorseLoverZ.com

Private Mortgage Insurance Annual Disclosure (PMI) (Sample)

Sample Annual PMI Disclosure

We (Lender) require you (Borrower) to maintain private mortgage insurance (PMI)) in connection with your mortgage loan. PMI protects lenders and others against financial loss if borrowers default. Federal Law provides that under certain circumstances, you may have the right to cancel Private Mortgage Insurance (PMI). Federal Law also establishes when Private Mortgage Insurance (PMI) must be terminated. This disclosure describes those cancellation and termination rights.

Borrower's Requested Cancellation

At the borrower's written request to the Servicer, Private Mortgage Insurance (PMI) must be canceled:

1. The date on which the principal balance of the loan, based solely on the initial amortization schedule, is first scheduled to reach 80% of the original value of the property securing the loan.

2. The date on which the principal balance of the loan, based solely on actual payments made, reaches 80% of the original value of the property securing the loan.

PMI shall then be canceled if you meet all of the following requirements:


1. You must submit your cancellation request in writing to the mortgage loan servicer of your loan.

2. You must have a good payment history on your loan. A good payment history means that you have not made a mortgage payment that was more than 60 days past due or longer in the last 24 months preceding the later of the cancellation date or the date of your last cancellation request and that you have not made a mortgage payment that was more than 30 days past due or longer during the 12 months preceding the later of the cancellation date or the date of your last cancellation request.

3. You must be current on your mortgage loan payments as required by the terms of your mortgage loan.

4. You must have satisfied the note holder's request for:

a. Evidence that the value of the property securing the note has not declined below its original value; and

b. Certification that you do not have a subordinate lien on the equity in the property.

Click here for more information about: How to Cancel Private Mortgage Insurance (PMI)

AUTOMATIC TERMINATION

If you are current on your mortgage loan payments, Private Mortgage Insurance (PMI) will automatically terminate when the principal balance of your loan is scheduled to reach, based solely on the initial amortization schedule, 78% of the original value of the property. If, at that time, you are not current on your mortgage loan payments, Private Mortgage Insurance (PMI) will automatically terminate on the first of the following month after the date on which you become current.

Written request may be mailed to:

Lender's Address


Contact your mortgage loan servicer at (800) 555-5555 if you have questions in regards to whether or not you have met all the requirements to cancel your Private Mortgage Insurance (PMI).

money smartLendingTree Mortgage DropDowns