+1 vote
How can I remove PMI from my FHA loan, Purchased in May 2014 in AZ I have over 20% equity
asked Nov 30, 2017 in FHA Loans by Jessica

2 Answers

+1 vote
Since June 13, 2013, FHA mortgage insurance premiums (MIP) have permanent. You cannot get rid of them no matter how low your balance goes, or how high your home price appreciates. Your best bet, with 20 percent home equity, is to refinance with a conventional (non-government) mortgage. With no MIP, even if your interest rate doesn't drop a whole lot. But you might be able to do better with your rate too. According to Freddie mac, rates in May 2014 averages 4.21 percent. Today's are closer to 3.75 percent. Check with several competing lenders (easy to do right here) and see how much better you can do. And if you don't plan to keep your home forever, consider hybrids fixed for three, five or seven years. You might be able to get an even lower rate that way. https://themortgagereports.com/ratequote
answered Dec 1, 2017 by GinaPogol (47,650 points)
0 votes
You cannot eliminate FHA MIP on FHA LOANS.  However, you can refinance your current FHA LOAN to conventional loan and eliminate FHA mortgage insurance premium if your loan to value is lower than 80% LTV.

Gustan Cho NMLS 873293
The Gustan Cho Team at USA MORTGAGE NMLS 227262
Branch Manager of USA MORTGAGE
answered Feb 13, 2018 by GustanCho (106,540 points)

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