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David Cash
9 months ago
I am trying to eliminate the PMI. My loan is $599,000 while the value of the home is over 1 million. The loan started in April 2012. Can I eliminate the PMI? If so, what steps do I need to take?
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Joe Wallace
9 months ago
Are you asking about private mortgage insurance on a conventional mortgage or the FHA Mortgage Insurance Premium for FHA single-family home loans?
For conventional mortgages, you may need to speak to your loan officer to discuss the private mortgage insurance requirements for that financial institution. For FHA mortgages, Bruce Reichstein answered this question a while back, here is a quote of his answer:

"Here is the answer pertaining to FHA loans:
"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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