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When does PMI go away on FHA mortgage?

When does PMI payment on FHA mortgage loan go away? I have a FHA mortgage with a loan origination date in Sept. 2008. How much equity before do I need to have before PMI payment goes away?
By j_man00311 from PA May 2nd 2014
Reply

Unfortunately FHA has changed the guidelines for the monthly mortgage insurance portion of the payment. It will stay with the loan for the duration. The only way to remove it is to refinance the loan into a convention Fannie or Freddie loan which may not be in your best interests if the original date was 2008. Current rates may be higher and you would have to qualify under today's new guidelines including Ability to Repay.

May 2nd 2014

78% and you need to speak with your lender to find out their policy.

May 2nd 2014

The below response is incorrect unfortunately. It's true you can't eliminate MIP (PMI is for conventional loans - FHA loans are MIP or Mortgage Insurance Premium) on NEWLY originated FHA loans BUT since yours was done back in 2008, it WILL in fact be removed automatically once you have 22% equity in the property. A simple call to your current lender would be the easiest way to determine the exact date.

May 2nd 2014

Good answers below. I wanted to also mention that removal of PMI does not always happen automatically. Often you will need to pay for an out of pocket appraisal to determine that the loan to value is now 78% or less of the homes current value. Before you order an appraisal, as mentioned already, it's strongly suggested to contact your current lender or servicer to determine their process and requirements on providing this information. Best of luck Mike Kohlerwww.netequityloans.com

May 2nd 2014

I agree with the comment below. Always start with a call to your current mortgage company and ask for the process to have the MI cancelled. Another options to consider is refinancing into a loan option with MI and potentially lowering your rate at the same time. Feel free to contact me at info@nationsloans.com

May 3rd 2014

78% Loan to value (LTV). Since you've had the loan for at least 5 years, this can be calculated in two ways 1) 78% LTV based on original purchase price or 2) 78% based on a new appraisal if the value of your home has risen. In the first case, your loan servicer should drop your PMI automatically when you hit this milestone, in the second case, you will need to initiate this with your lender.

May 4th 2014

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