Quantcast
Learn About Homeownership:
QuestionsCompaniesPeople
Few decisions are more important than how to pay for or maintain your home. Question Big can help you stay smart and avoid mistakes.
265
Views
2
Answers
0
Likes
Carla Palmer
7 months ago
My loan originated in 2005 and I have paid MIP for 12 years now. My home value, per taxes, is way more than my original loan amount and I owe about 79% of the original loan value.

How much longer do I have to pay the MIP?
 
Answer this question:

Please log in to submit an answer.

Best Expert Answer
Joe Wallace
7 months ago
Bruce Reichstein answered a variation of this MIP question some time ago, here's the answer he gave:

"Certain rules were in place for FHA insured loans pertaining to cancellation of the Annual Mortgage Insurance Premium (MIP) for case numbers assigned prior to June 3rd, 2013. New rules apply for case numbers assigned after that date. Dates for removal guidelines are critical.

Removal for a 30 Year Term – borrower must pay the monthly insurance premium for a minimum of 60 months and the loan must reach 78% loan-to-value (LTV) as a result of paying the loan down (amortization). LTV is determined by the original sales price on the closing statement and not the new value of the home.

Removal for a 15 Year Loan Term – For Loans that closed prior to June, 2012 – there is NO requirement that FHA MIP be paid for 60 months if the LTV is below 78%. LTV is determined by the original sales price on the closing statement and not the new value of the home.

How to Cancel the FHA MIP? While it states that FHA will automatically drop the monthly FHA MIP based on the amortization schedule, this is not always the case. We suggest contacting your mortgage servicer to make sure they are aware of your projected date for your MIP removal and for any other procedures needed."
FHANewsBlog.com
Our blog is brought to you by the knowledgeable group of counselors at FHA.com
Visit our website
Best Expert
Answer
More Answer:
Category Expert
Bruce Reichstein
7 months ago
Here is information on FHA insured loans pre-dating June 3, 2013.

FHA MIP will automatically cancel when these two conditions are met:

30-year loan terms: Annual MIP cancels once the loan reaches 78% loan-to-value and annual MIP has been paid for at least 60 months.
15-year loan term: Annual MIP cancels once the loan reaches 78% loan-to-value. There is no requirement for MIP to be paid for at least 60 months.

While it says automatically, it is up to the borrower to initiate the process from their current servicer, for the FHA may use your original home value. You also may need to pay for an updated appraisal. Please contact your servicer and do the removal request.
FHA.com
Experienced FHA and VA home loan mortgage banking for over 30 years.
Visit our website
Category
Expert
More
Ask a Question
 


Choose up to 5 tags (e.g. FHA loan). We'll recommend some, but you can change them if you want.
Thank you!
Please check the email address you registered with for your account confirmation. Then click the activation link to get started.
Question Big is a community of consumers and professionals sharing experiences, knowledge and advice.
Report Content
I'm reporting this because I think it is:
Report User
I'm reporting this user because I think the user is:
Report Company
I'm reporting this company because I think the company is:
Thank you!
Our team will review the content you reported and will take appropriate actions. We appreciate your contribution to the Question Big community.