As of June 3, 2013, FHA Mortgage Insurance Premium (MIP) can never be removed from a mortgage insured by the FHA.
Just what is FHA MIP anyways?
FHA MIP is the mortgage insurance premium that you pay for receiving a loan insured by the Federal Housing Administration (FHA).
Luckily, there is still hope! The only way you can get out of paying your FHA mortgage insurance is if you refinance out of the fha loan, and into a conventional loan.
Conventional loans still come with mortgage insurance, but only if you have less than 20% equity. After you obtain 22% equity, the lender is required by law to automatically remove the mortgage insurance.
How to Get Rid of My FHA MIP Faster?
- Order a new appraisal for your property. Your updated appraised value could give you the equity you need to remove your mortgage insurance.
- Prepay your loan. An additional $50 – $100 a month can dramatically drop your loan balance over time.