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Carla Palmer
9 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?
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Best Expert Answer
Joe Wallace
9 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."
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Bruce Reichstein
9 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.
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