Mortgage Insurance (PMI and MIP) Frequently Asked Questions

Private mortgage insurance (PMI) is paid by borrowers when they take out a mortgage and pay a down payment of less than 20%. The purpose of PMI is to insure the mortgage for the lender in the event the borrower defaults. Private mortgage insurance is typically paid as a portion of your monthly mortgage payment, in addition to your principal, interest, property tax and homeowners insurance. There are options to remove PMI dependent on the requirements specific to your loan.

If your loan is covered under the Homeowners Protection Act of 1998*, and you are current on your loan payments, PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property (regardless of the outstanding balance, based solely on the initial amortization schedule (in the case of a fixed-rate loan) or the then-current amortizations schedule (in the case of an Adjustable Rate Mortgage). If you are not current on your loan payments as of that date, PMI will automatically terminate when you become current on your payments. 

If your loan is not covered under the Homeowners Protection Act of 1998, please contact us to determine if you can cancel PMI on your loan or for further information about PMI cancellation.

*Homeowners Protection Act of 1998 (HPA) covers loans that closed on or after July 29, 1999, and the property is a single family, 1 unit primary residence. 

If your loan is covered under the Homeowners Protection Act of 1998*, you have the right to request that private mortgage insurance (PMI) be cancelled on or after either of these dates:

1. The date the principal balance of your loan is first scheduled to reach 80% of the original value of the property or;
   
   
2. When the balance reaches 80% prior to the original scheduled date if there have been additional payments made to your principal balance.

PMI will only be cancelled on these dates if the following conditions have been met:

1. You contact M&T for request for PMI cancellation.
   
   
2. You have a good payment history. This requires that you have not made a payment that was 30 days or more past due in the last 12 months and that you have not made a payment that was 60 days or more past due in the last 24 months and;
   
   
3. At your expense, a valuation to be ordered by M&T, that will provide evidence that the value of the property has not declined below its original value.

If your loan is not covered under the Homeowners Protection Act of 1998, please contact us to determine if you can cancel PMI on your loan or for further information about PMI cancellation.

*Homeowners Protection Act of 1998 (HPA) covers loans that closed on or after July 29, 1999, on a property that is a single family, 1 unit primary residence. 

Mortgage insurance cancellation requests and mortgage insurance questions can be directed as follows: 

1. By Mail:
   
   M&T Bank
   Attn: Mortgage Insurance Department
   P.O. Box 1288
   Buffalo, NY 14240
   
   
2. By Email:
   PMI@mtb.com
   
   
3. By Phone: 1-800-724-2224

To determine your loan-to-value (LTV) for home purchases covered under the Homeowners Protection Act of 1998 (HPA), you would divide your current principal balance by the lesser amount of the appraised value of the property at the time of closing or purchase price.

Mortgage insurance premium (MIP) is insurance from the Federal Housing Administration (FHA) that protects lenders against loss in the event a borrower defaults on a mortgage. 

• Effective for all loans that closed on or after January 1, 2001, and with FHA case numbers assigned prior to June 3, 2013, FHA annual MIP will be automatically cancelled when your loan reaches the last premium date to be remitted to FHA. Please contact us to determine when the MIP on your loan will be automatically terminated.
  
  
• Loans with FHA case numbers assigned on or after June 3, 2013: Please contact us to determine if you can cancel MIP on your loan and one of our representatives will provide further information specific to your loan. 

Effective for all loans that closed on or after January 1, 2001, and with FHA case numbers assigned prior to June 3, 2013, FHA annual MIP can be cancelled if the following conditions have been met:

1. Mortgage terms greater than 15 years: the annual MIP will be cancelled when the loan to value ratio reaches 78%, provided the mortgagor has paid the annual mortgage insurance premium for at least 5 years;
   
   
2. You have a good payment history. This requires that you have not made a payment that was 30 days or more past due in the last 12 months and;
   
   
3. You contact M&T when you have met the above requirements to review your loan for MIP Removal.

Loans with FHA case numbers assigned on or after June 3, 2013, MIP can not be cancelled prior to the MIP term provided at closing. Please contact us if you need further information regarding when your MIP will terminate. 

Mortgage insurance cancellation requests and mortgage insurance questions can be directed as follows: 

1. By Mail:
   
   M&T Bank
   Attn: Mortgage Insurance Department
   P.O. Box 1288
   Buffalo, NY 14240
   
   
2. By Email:
   PMI@mtb.com
   
   
3. By Phone: 1-800-724-2224

Mortgage insurance cancellation requests and mortgage insurance questions can be directed as follows: 

1. By Mail:
   
   M&T Bank
   Attn: Mortgage Insurance Department
   P.O. Box 1288
   Buffalo, NY 14240
   
   
2. By Email:
   PMI@mtb.com
   
   
3. By Phone: 1-800-724-2224