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When can I drop my PMI on a FHA loan?  I refinanced the loan in July 2012.  The loan was taken out for around $206,000 and I have it paid down to about $182,000. The appraised value of the home at the time of the loan was $262,000 and there is no reason for me to think that it has gone down in that time (other than age).  The neighborhood is still very good and home values in the area have not moved much that I am aware of. 
In my searching online for an answer I have come across two different ways in which the PMI can be dropped.  

The first one is when the amount due (182,000) drops below 78% of the value of the house.  Going off that scenario the LTV (Loan To Value (262,000)) would be around 69%, well below the requirement.

The second one is when the amount due (182,000) drops below 78% of the original loan amount (206,000).  With this scenario the percentage is 88%, which would not qualify.

My question is which is correct.  I am nearing 5 years on the loan and I have not missed a single payment nor have I been late on a single payment, so the loan is in good standing.  In fact I have been paying additional principal to the loan every month ranging from $300-$400 per month.  

Any help would be appreciated.  

Thanks

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rated:
Have you talked to your lender? They can tell you what their requirement is.

rated:
Not to answer your question, but why did you need PMI on the refi in the first place?
The loan was taken out at less than 80% of appraised value (= 209,600), so PMI should not have been required.
Or what am I missing here?

rated:
Not to answer your question, but why did you need PMI on the refi in the first place?
The loan was taken out at less than 80% of appraised value (= 209,600), so PMI should not have been required.
Or what am I missing here?

Maybe this helps: http://themortgagereports.com/7570/fha-mip-cancel

rated:
It should drop after this July...

Before June 3, 2013 — If you have a 30-year FHA loan that was originated prior to June 3, 2013, your annual MIP will automatically cancel at 78% LTV, provided you’ve been paying mortgage insurance for at least 5 years.

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