Mortgage Insurance, or MI, is an insurance policy that protects a lender in the event that the homeowner defaults on the loan.

News Flash: Once you`ve achieved 20% equity in your home, you may be eligible to cancel your MI (with the exception of FHA loans, which do not allow the removal of MI).

Depending on the type of loan you have, you will pay for mortgage insurance one of two ways: Private Mortgage Insurance (known as PMI) or FHA Mortgage Insurance (known as MIP).

HOMEOWNER REQUESTED CANCELLATION

You may be eligible to request the cancellation of your PMI one of two ways:

• When your loan-to-value (or LTV) ratio is scheduled to reach 80% of the Original Value* of the property (regardless of outstanding balance on this date)
• When the principal balance of your mortgage reaches 80% of the Original Value* of the property (based on actual payments)

Additional requirements:

• You must be current on your loan
• All payments in the last 12 months must have been paid no later than 30 days past the due date
• All payments in the last 24 months must have been paid no later than 60 days past the due date
• You must certify that the property is not subject to a subordinate lien
• You must satisfy any requirement of the holder of the mortgage for evidence that the value of the property has not declined below the original value

Substantial improvements defined:

Improvements or renovations that substantially extend the useful life of the mortgaged premises are considered more extensive than repairs and may include replacement of major components such as cabinets, bathtub, bathroom title, relocation of plumbing/gas fixtures/appliances, or significant structural alterations such as relocating walls and/or the addition of square footage.

* Based on Original Value, not current value.

AUTOMATIC TERMINATION

We will automatically cancel your PMI when the principal balance of the mortgage is scheduled to reach 78% of the Original Value* of the property (regardless of outstanding balance on this date).

If your loan reaches 78% as defined above and your loan is not current, Mortgage Insurance must be terminated once the loan becomes current.

* Based on Original Value, not current value.

Please send your PMI cancellation requests to:

Servbank
ATTN: Homeowner Care
3138 E. Elwood Street
Phoenix, AZ 85034

Please include an explicit request to cancel PMI, your loan number, the date, and the signatures of all homeowners.

If you have questions about your specific requirements to request a cancellation, please call 866-867-0330.

The requirements above comply with Federal and Agency requirements. State law might provide more beneficial requirements and when applicable, those rules will be followed.