Comments on: How Much For FHA Mortgage Insurance?

By: Jesse McCrady NMLS #37702

Jesse McCrady NMLS #37702 — Mon, 03 Jan 2011 23:27:51 +0000

There are a lot of confusing answers so I would like to set the record straight.

30 year FHA loan. Regardless of the loan to value, MIP must me paid for 5 years at the very least. You are also required to pay an upfront mortgage insurance premium even if you have paid one in the past (refinance transactions).

15 year FHA loan
You still have to pay an upfront mortgage insurance premium. However if your loan to value at 89.99 percent or lower you do not have to pay MIP.

By: maryann

maryann — Thu, 08 Jul 2010 12:48:59 +0000

I have been paying PMI for seven years and have never once been late on my mortgage. I did notice it dropped $10 a month. I now pay $65/month instead of $75. I have reached the ratio to have it dropped and I do have an FHA loan. I received a letter from Wells Fargo that I have to keep the PMI for the life of the loan. This is not what I was told at signing with a lawyer present.

Any advice?

By: Rich F

Rich F — Tue, 29 Jun 2010 15:14:29 +0000

The way it was explained to me, and confirmed by several sources, was that any FHA 30 year loan, whether for a purchase or refi, and regardless of LTV, would require their MI. I tried to have it canceled a year or so into my FHA refi loan, and the lender told me I would need to pay it for 5 years, regardless of LTV. I did a refi 3 years ago at 70% LTV, and I’m still paying it. But, my city assessment has also dropped about 10-12% in the last couple of years, so I can see why they don’t use new appraised value to determine a new LTV. Nothing in my neighborhood is selling for what houses were selling for in 2007. It’s not really worth it to me to refi again into a conventional loan, so I’ll just pay it for 2 more years, then cancel.

By: Tina

Tina — Fri, 25 Jun 2010 10:36:49 +0000

probably not. with an fha loan you have to pay the premium for a minimum of 5 years. If I were you I would check into refinancing into a conventional loan. with 20% equity there would be no PMI.

By: Jon Doe

Jon Doe — Mon, 14 Jun 2010 17:09:45 +0000

So.. I have a 30 yr fixed FHA and I am paying alot of MI… its roughly 200/mo…

I have just paid the first payment and ran into some $$$ – and so I’m paying down alot of the principal… After the payment, I may be close to 70% based on one of the appraisals while purchasing… Any chance I can get the MI removed?

I also own another property outright.. I dont understand why they need MI.

By: Gene Neal

Gene Neal — Fri, 09 Apr 2010 14:51:20 +0000

No that is not true. You are allowed to receive a new policy.

By: Aaron

Aaron — Fri, 26 Mar 2010 08:15:41 +0000

Is it true that if you cancel your mortgage insurance, you will not be able to get a new mortgage insurance in the future?

By: Vern

Vern — Wed, 20 Jan 2010 23:16:08 +0000

Ed says that there is no MI on 15 year FHA loans with a LTV of under 95%. FHA says it has to be under 90%

By: alma

alma — Thu, 29 Oct 2009 02:30:33 +0000

I am in the 24th year of my mortgage. I contacted my mortgage company two years ago about dropping my PMI mortgage insurance and was told by the lender that my FHA loan didn’t qualify because it was taken out before the law was effective. Is this true?

By: Austin

Austin — Fri, 09 Oct 2009 17:55:03 +0000

How does FHA determine value? New appraisal? I am getting the run around on this subject, I was told that LTV has nothing to do with current value, which is stupid. Just another way for them to try to make money.