Mortgage Insurance Information
What is mortgage insurance?
Mortgage insurance allows you to purchase or refinance your home with less money on your down payment and may be required for certain government insured/guaranteed loan programs. Mortgage insurance is different than your homeowners insurance. Mortgage insurance protects the lender from the risk of default or foreclosure on the loan. On the other hand, homeowners insurance protects you from damage to your home.
How to cancel your mortgage insurance:
Identifying your mortgage insurance
Your type of mortgage insurance is based on your loan.
PMI
Private mortgage insurance (PMI) covers conventional loans.
FHA MIP
Mortgage insurance premium (MIP) applies to Federal Housing Administration (FHA) insured loans.
USDA Annual Fee
The United States Department of Agriculture (USDA) charges an annual fee for your USDA guaranteed loan.
PMI, FHA, MIP and USDA annual fees are 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 homeowners, flood or windstorm insurance.
What’s PMI?
(Private Mortgage Insurance)
PMI is needed for certain loan types and is required when the homebuyer pays less than a required 20% down payment.
- Used to determine your eligibility so you can cancel your PMI.
- The percentage of the current outstanding balance of your mortgage loan and your home’s original or current value.
- For example, if your current outstanding balance is $90,000 and your home’s value is $100,000, your LTV is 90%.
Your current outstanding balance / Your home's value = LTV
- An interior/exterior evaluation of the property completed by a Chase-approved third-party licensed appraiser.
- Confirms the current property value.
- Used to confirm the current value of your property and help us calculate your LTV.
- An interior/exterior evaluation of the property completed by a real estate agent to confirm the property value.
- This is used to ensure that the value of the property hasn't declined since the loan closing.
- You may be eligible if your loan meets an 80% loan-to-original value (LTOV).
- Regulatory guidelines don’t allow you to choose your own appraiser or real estate agent. We consider an appraisal or BPO to be valid up to 120 days from the date of inspection.
- An appraisal or BPO isn’t available for FHA or USDA loans. Please contact us for more information.
What’s MIP?
FHA MIP (Mortgage Insurance Premium)
If you have a Federal Housing Administration (FHA) insured loan, the FHA insurance protects the lender from the risk of default or foreclosure on the loan. You pay a monthly MIP for the FHA insurance.
MIP is required on all Federal Housing Administration (FHA) insured loans.
MIP is paid to the Department of Housing and Urban Development (HUD).
What’s a USDA Annual Fee?
USDA (United States Department of Agriculture) Annual Fee
If you have a USDA guaranteed loan with a conditional commitment date of October 1, 2011 or later, you'll pay a required annual fee.
Canceling mortgage insurance
Let’s go through the requirements for eliminating mortgage insurance, allowing you to save money in the process.
- 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.
- If your loan was originated before January 1, 2001 or if your loan has a case number assignment date on or after June 3, 2013; HUD doesn't permit an early cancellation of MIP.
- If your loan was originated on or after January 1, 2001 and has a case number assignment date prior to June 3, 2013, you may be able to request cancellation of MIP. Please call us at 1-800-848-9136 or send a written request to the address or fax number below.
Unfortunately, the USDA annual fee may not be canceled.
Speak with an advisor: 1-800-848-9136
Quick guides to canceling mortgage insurance
When discussing your mortgage insurance, questions are bound to come up. We've created these quick reference guides for your convenience.
Additional information
Do you have more questions related to mortgage insurance? For additional info, feel free to reach out at any time through a variety of methods.
Phone
1-800-848-9136
Chase
Mail Code LA4-6777
700 Kansas Lane
Monroe, LA 71203
Fax
1-614-500-4676
TTY
We also accept operator relay calls