How to request PMI removal with Chase
Quick insights
- Private mortgage insurance (PMI) can be removed in specific situations.
- PMI removal for a Chase-owned loan is typically based on an automatic termination date, but there are situations when removal can be requested.
- Read to learn about when and how PMI may be removable for Chase-owned primary single residence and second homes.
Options for canceling or removing PMI vary by loan type and property type. Multiunit properties, for instance, may have different PMI requirements and guidelines for removing the insurance. Read on to learn about when PMI may be removable for Chase-owned primary single residence and second homes.
What is PMI, and why is it required?
PMI is a type of mortgage insurance that is typically needed for certain loan types when the homeowner pays less than a 20% down payment. From a lender’s perspective, PMI provides the extra assurance that the loan will be repaid if the borrower defaults on the loan. PMI payments are typically collected as part of the escrow portion of your monthly mortgage loan payment and shouldn’t be confused with other types of insurance, such as homeowner’s insurance.
When PMI can be terminated automatically from Chase-owned loans
This occurs when your loan reaches the scheduled 78% date based upon the original amortization schedule. Your loan must be current the month your loan reaches the scheduled 78% loan to original value date. The automatic terminate date is based on your original schedule of payments, and the appraised value of your home at the time you originated your loan or the purchase price, whichever is less. Additional principal payments are not accounted for in establishing the automatic termination date.
Modifications to your loan and/or other circumstances may impact your automatic termination date.
How can you waive a PMI premium before the automatic termination?
Depending on the loan, you may be eligible to waive (remove) your PMI from a Chase-owned mortgage if you meet these criteria:
- Your loan was originated on or after July 29, 1999.
- Your home is a single-family dwelling or unit.
- Your property is occupied by you, the owner.
- Your mortgage payments are up to date, with no outstanding late charge balance due.
- Your loan-to-value (LTV) ratio is 80% or lower.
Early termination based on original value
When the LTV of your loan reaches 80% based on original value or when your loan reaches its scheduled 80% date based upon the original amortization schedule, you can request a cancellation. A Broker Price Opinion (BPO) or an appraisal is required to verify that your property value hasn’t declined. Your account must not have any 30-day late payments in the last year and no 60-day late payments in the last two years.
Early termination based on current value
Your options vary depending on the investor for your loan and if you have made significant improvements to the property. A Broker Price Opinion (BPO) or an appraisal is required to verify that your property value hasn’t declined, except for certain loans. Your account must not have any 30-day late payments in the last year and no 60-day late payments in the last two years.
The State of New York Mortgage Agency (SONYMA) does not allow for a customer to ever waive using an updated appraisal or BPO.
If you have made significant improvements that have increased the value of your property:
- You have had your loan less than two years, and the loan to current value is at 80% or less; OR
- You have had your loan between 2 and 5 years, and the loan to current value is at 80% or less.
Requirements without significant improvements to increase the value of your home:
- You have had your loan between 2 and 5 years, and the loan to current value is at 75% or less; OR
- You have had your loan more than 5 years, and the loan to current value is at 80% or less.
How to request a PMI waiver with Chase
The requirements vary depending on your loan type and applicable state, federal and investor guidelines.
Please call us at 1-800-848-9136 or send a written request to the following address:
Chase
Attn: PMI Department
P.O. Box 24726
Columbus, OH 43224
We’ll send you a letter with the requirements to cancel your PMI. If you’ve modified your loan, the date you're eligible to cancel your PMI may have changed.
Is there a cost to remove PMI?
Chase will request a property valuation, at a cost to you, to determine if you meet the LTV requirement for your home.
In summary
For most mortgages, you can request removal of PMI once your loan-to-value (LTV) ratio reaches 80% of the original property value, or sooner if the home appreciates in value. Even if you don’t make a request, your lender will typically remove PMI from your payment structure when your LTV is scheduled to reach 78%, if you are current on payments.
If you are planning to refinance your home or have other mortgage questions, consider reaching out to a Chase Home Lending Advisor.
