Writing a Mortgage Cancellation Letter That Works

Cancelling a mortgage is a significant step that requires a carefully written letter. In this guide, I’ll share my knowledge and provide three unique templates to help you write an effective mortgage cancellation letter.

Key Takeaways

  • Purpose: Clearly state your intention to cancel the mortgage.
  • Reason: Provide a valid reason for the cancellation.
  • Details: Include essential details like loan number and property address.
  • Formal Tone: Maintain a professional and courteous tone throughout.
  • Follow-up: Mention your expectations for confirmation and the next steps.

Why Writing a Good Mortgage Cancellation Letter Matters





A well-written mortgage cancellation letter ensures that your request is processed smoothly and efficiently. It prevents misunderstandings and sets a formal record of your intent. Here’s why it’s important:

  • Clarity: Eliminates ambiguity about your request.
  • Documentation: Serves as a formal record.
  • Professionalism: Reflects well on you and facilitates a positive response.

Steps to Write a Mortgage Cancellation Letter

1. Gather Necessary Information

Before writing the letter, ensure you have all the necessary information at hand:

  • Mortgage loan number
  • Property address
  • Your contact information
  • Reason for cancellation

2. Format Your Letter

Use a standard business letter format:

  • Your name and address
  • Date
  • Lender’s name and address
  • Salutation

3. Write the Content

Start with a clear statement of your intention, provide your reason, include relevant details, and end with a courteous closing.

4. Proofread



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Ensure there are no errors and that the letter is clear and concise.

5. Send the Letter

Send the letter via certified mail to ensure it’s received and keep a copy for your records.

Template 1: General Mortgage Cancellation Letter

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Recipient Name]
[Recipient Title]
[Bank or Mortgage Company Name]
[Company Address]
[City, State, ZIP Code]

Dear [Recipient Name],

I am writing to formally request the cancellation of my mortgage, effective [desired cancellation date]. My mortgage loan number is [loan number] and the property address is [property address].

The reason for this cancellation is [reason, e.g., selling the property, refinancing, etc.]. Please provide written confirmation of the cancellation and any further steps I need to take.

Thank you for your prompt attention to this matter.

Sincerely,

[Your Name]

Template 2: Mortgage Cancellation Due to Property Sale

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Recipient Name]
[Recipient Title]
[Bank or Mortgage Company Name]
[Company Address]
[City, State, ZIP Code]

Dear [Recipient Name],

I am writing to request the cancellation of my mortgage loan number [loan number] for the property located at [property address]. I am in the process of selling the property, and the closing date is set for [closing date].

Please initiate the cancellation process and provide me with the necessary confirmation and any required steps to complete this request.

Thank you for your cooperation.

Sincerely,

[Your Name]

Template 3: Mortgage Cancellation Due to Refinancing

[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]

[Recipient Name]
[Recipient Title]
[Bank or Mortgage Company Name]
[Company Address]
[City, State, ZIP Code]

Dear [Recipient Name],

I am writing to request the cancellation of my mortgage with loan number [loan number] for the property at [property address]. I have refinanced with another lender, and the new loan will be effective from [new loan start date].

Please confirm the cancellation and inform me of any additional actions required from my side.

Thank you for your prompt attention.

Sincerely,

[Your Name]

Tips from Personal Experience

  • Be Clear and Concise: Ensure your letter is straightforward and to the point.
  • Double-Check Details: Verify all details, such as loan numbers and addresses, to avoid processing delays.
  • Follow Up: Don’t hesitate to follow up with your lender if you don’t receive a timely response.

Real-Life Example

Once, I had to cancel a mortgage due to refinancing. Initially, I missed including the property address, which delayed the process. I learned the importance of including all necessary details to prevent such issues. Here’s a checklist to help you:

Checklist for Mortgage Cancellation Letter
Loan number
Property address
Your contact information
Reason for cancellation
Desired cancellation date
Request for confirmation

Final Thoughts

In my opinion, a well-crafted letter not only facilitates the cancellation process but also reflects your professionalism. Taking the time to write a clear and courteous letter can save you time and hassle in the long run.

Frequently Asked Questions (FAQs)

Q: What is a mortgage cancellation letter?

Answer: A mortgage cancellation letter is a formal request to a lender to terminate an existing mortgage. From my experience, it’s essential to include all relevant details like your loan number and property address to avoid any processing delays.


Q: When should I send a mortgage cancellation letter?

Answer: It’s best to send a mortgage cancellation letter as soon as you’ve decided to pay off your mortgage or refinance. In my case, I ensured to send it well ahead of my desired cancellation date to allow ample time for processing.


Q: What information should be included in a mortgage cancellation letter?

Answer: The letter should include your loan number, property address, and a clear statement of your intent to cancel the mortgage. Based on my experience, providing detailed contact information also helps in case the lender needs further clarification.


Q: How long does it take for a mortgage cancellation to be processed?

Answer: Processing times can vary, but it typically takes a few weeks for a mortgage cancellation to be completed. When I cancelled my mortgage, I followed up regularly to ensure there were no delays in the process.


Q: Can I cancel my mortgage at any time?

Answer: While you can technically request to cancel your mortgage at any time, there might be penalties or fees involved depending on your loan agreement. I reviewed my mortgage terms carefully and consulted with my lender to understand any potential costs before proceeding.


Q: Do I need to pay any fees to cancel my mortgage?

Answer: Some lenders may charge fees for early mortgage cancellation, so it’s important to check your loan agreement. In my experience, negotiating with the lender helped me reduce some of these fees.


Q: What happens to my escrow account when I cancel my mortgage?

Answer: Upon cancelling your mortgage, any remaining funds in your escrow account are typically refunded to you. I made sure to confirm this with my lender and received my escrow balance within a few weeks after the cancellation.


Q: How should I send my mortgage cancellation letter?

Answer: It’s advisable to send the mortgage cancellation letter via certified mail to ensure it is received and documented. I also kept a copy for my records and tracked the delivery for peace of mind.


Q: What if my lender does not respond to my mortgage cancellation letter?

Answer: If your lender does not respond, follow up with a phone call or an email to ensure your request is being processed. In my case, persistence paid off, and I was able to get a confirmation after multiple follow-ups.


Q: Can I use a template for my mortgage cancellation letter?

Answer: Using a template can be helpful, but make sure to personalize it with your specific details. When I wrote mine, I found that adding a personal touch and being clear about my request sped up the process.