Comments on: Can You Cancel the FHA mortgage insurance premium (MIP)? You bet.

By: Victor A. Delapa

Victor A. Delapa — Mon, 01 Mar 2010 17:58:48 +0000

Late payments have no affect on when the MIP can be canceled. The only 2 driving factors behind cancelling MIP are: 1. Time & 2. LTV.

In order to cancel MIP (on a 20, 25 or 30 year fixed loan) the MIP must have been paid monthly for a period of 5 years

AND

The equity stake in the property must be at least 78% (78 LTV)

That’s it!!

Also, there are never pre-payment penalties on FHA loans, which means a property owner can refinance or sell the property at any time he/she wishes and there will be ABSOLUTELY NO MONETARY PENALTY incurred for doing so!

By: Laura Roman

Laura Roman — Wed, 13 Jan 2010 02:18:40 +0000

I have a FHA Loan since May of 2003. I have been late on 2 payments til the present time. When can this MIP insurance be cancelled?

By: Peter G. Miller

Peter G. Miller — Sat, 31 Oct 2009 23:52:00 +0000

The lender is only being paid by the FHA if there is a shortfall with the loan.

The banks is not getting the premium, it is being collected for the FHA.

Peter

By: lorna richardson

lorna richardson — Thu, 29 Oct 2009 16:37:14 +0000

Isn’t MIP insurance paid by buyers supposed to kick in if a loan A) goes into forclosure or B) has to suffer a short sale.

If so the bank is actually getting paid twice.
please let me know about this. I am a realtor.
Thanks
Lorna

By: Mortgage

Mortgage — Fri, 20 Mar 2009 11:55:43 +0000

I still trying to cancel mine.