If your fha loan was originated before june 2013 you might be eligible to get rid of mortgage insurance. The up front mortgage insurance premium is a one time fee due and payable at loan closing.
Wait out the term to get rid of mip based on the amount of a down payment you provided the amount of the loan and the original loan repayment term fha mip is due every month for either 11 years or the life of the loan.
How to get rid of fha mortgage insurance premium. Keep in mind the best way to figure out when you can remove your mortgage insurance is to call us. Fha mortgage insurance entails two payments. The requirements for removing your mortgage insurance premium mip or private mortgage insurance pmi depend on your loan.
Those older fha loans are eligible for mip elimination after 5 years though the loan must. Make your payments each month according to the amortization. Fha mortgage insurance can t be canceled if you make a down payment of less than 10.
This is an added annual cost about 0 3 percent to 1 5 percent of your. You get rid of fha mortgage insurance payments by refinancing the mortgage into a non fha loan. Canceling mip on fha loans.
Homebuyers with a down payment of less than 20 percent are usually required to get private mortgage insurance or pmi. Getting rid of fha mortgage insurance method 2. Here are some general guidelines.
The fee equals 1 75 percent of the loan amount on most fha. After june 3 2013 if you take out an fha loan in 2017 with a down payment below 10 you will not be able to cancel your annual mortgage insurance premium until the end of the loan s term or the first 30 years of the term whichever comes first. It s often the quickest and most cost effective way to do it.
In san francisco the mortgage insurance premium could be more than 500 a month based on the maximum fha loan amount of 679 650. This date should have been given to you in writing on a pmi disclosure form when you received your mortgage. Refinance out of it cancelling fha mortgage insurance is also possible by refinancing into a conventional loan.
You have the right to request that your servicer cancel pmi when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. If you fall into the first category you can contact your lender once you hit the 11 year mark and request mip be dropped.