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asked Dec 19, 2017 in Refinancing by David

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Hi, and thank you for your question. If I did not interpret your request correctly, please follow up and I will do the research and get your answer.

MIP is the mortgage insurance required by FHA when you finance through their programs. Unless your FHA loan was obtained before June 3, 2013, you cannot "eliminate" MIP. It's there for the life of your loan, no matter how much you pay off or how much your property value has risen. So the only way to eliminate MIP is to refinance into another loan.

Check the sources of these notices -- they are probably just solicitations from lenders attempting to get you to refinance into a loan with no MIP. To repeat, you cannot cancel MIP without refinancing unless you have an older loan. If the ads appear to be government documents and are not really from the government, the lender may be breaking the law. Don't deal with anyone who tries this.

If you received your FHA loan before June 2013, you are eligible for MIP cancellation after five years.

You must have 22% equity in the property, and you must have made all payments on time.

For homeowners with FHA loans issued after June 2013, you must refinance into a conventional loan to dump MIP. You can avoid mortgage insurance altogether if your loan-to-value is 80 percent or less (you get a new appraisal, so if your value increased, you have a good shot at eliminating MIP).

Even if your loan-to-value exceeds 80 percent, conventional private mortgage insurance is likely to be less than FHA, especially if you have good credit, and it automatically drops off once you pay your loan balance down.

Find reputable lenders to help you with this here. https://themortgagereports.com/ratequote
answered Dec 19, 2017 by GinaPogol (47,650 points)

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