How long does one pay pmi on FHA

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I have a 30 year FHA loan owned by BOA. There seems to be a lot of different scenarios to getting rid of PMI. For example: %78, %80, %75 of appraised value. I've seen FTL mentioned. Some people say 5 years. etc... I plan on contacting the bank, but not sure I will get straight answers.

I have 20 years and 6 months remaining.
I have just over %20 of the original principal paid off.


When I originally took out the loan they said I would only pay PMI for a few years, but it's going on 10 years now. Thanks for any help

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grathan said:   I plan on contacting the bank, but not sure I will get straight answers.

You don't plan on it, you do it.

It's not PMI, it's MIP.

Quoting from another thread... but seems to apply here as well

BostonOne said:   Grathan - welcome to FatWallet! This is exactly the kind of question that is perfect for the New Users's thread on FatWallet finance.

Here's a link to that thread.


Edit: Search would have yielded these links as well:

Text
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RedCelicaGT said:   It's not PMI, it's MIP.

MIP= Morgage Insurance Premium for FHA loans and a few other federally insured programs
See:
http://www.zillow.com/advice-thread/Cancelling-MPI-on-an-FHA-loa...
FHA/HUD website: http://search.usa.gov/search?affiliate=housingandurbandevelopmen...

================= These are two different programs =========================
PMI=Private Mortgage Insurance (Not federally insured program)

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
More info:
http://www.frbsf.org/publications/consumer/pmi.html

5 years on my FHA.

Mortgage insurance (MI) is required for any FHA loan above 80% loan to value (LTV) at origination. After origination, FHA requires at the minimum 5 years of mortgage insurance, even if you have more than 20% equity...after the 5 year, MI will drop off ONLY if you have less then 78% LTV. Which means, even after 5 years, if you have 78% LTV or higher, you will still pay MI.

does that make sense?

you need to get below 78% and wait after 5 years to get rid of PMI and MI

You are getting conflicting answers because the FHA program guidelines change over time. You don't want today's rules; you want 2003's rules. Ideally you should review the closing documents for your own loan to review the terms.

satchelsofgold said:   You are getting conflicting answers because the FHA program guidelines change over time. You don't want today's rules; you want 2003's rules. Ideally you should review the closing documents for your own loan to review the terms.

True - read your loan terms. My paperwork clearly said after 13 months of payments it would drop off. Called the mortgage company so we could practice reading comprehension together, but that is another thing entirely. I think general terms have changed over time.

Worst case refi that sucker. Dang PMI scam that is ran - 5 years even when your LTV is beneath threshold. That is crap Oh we are not BOA, what did they say?

I don't have a FHA loan, but mine says that a year following the reaching the 80% LTV it will drop off, you can request an appraisal and pay a small fee to drop it earlier but you have to pay for the appraisal. At least that's my terms.

Sorry to Hijack but I am kind of in the same boat. FHA at 3.25%, bought the house (3000 SQ Ft. Duplex) when my landlord passed away. They started at 200k we settled at 164k because they wanted the estate settled fast. Appraiser shows up.....house appraises at 164k (yeah go figure). I have put about 10k of repairs in since. I figure the house will easily appraise at 200K with an appraiser who was not spoon fed a sell price.

I was told 78% of PURCHASE AND FIVE YEARS.

Obviously looking into a refi but I was told there is a 12 month waiting period on refi of a new purchase, is this true? I doubt if I can drop the rate any but would dropping PMI be worth it over waiting the five years? Currently it is 164 a month.



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