2 Thoughts on Can the MIP on an fha loan be removed?
  1. Reply
    Lndlrdlisa
    February 10, 2014 at 5:04 am

    They wont just remove it, to accomplish this you simply refinance when you have 20% equity.

  2. Reply
    Bob
    February 10, 2014 at 5:12 am

    There are two Mortgage Insurance Premiums with FHA loans. The 1.75% Up Front Mortgage Insurance Premium is added to your loan balance and typically financed into the loan. It cannot be cancelled. The second is paid with your monthly payments and is canceled automatically when the balance reaches 78% of the original appraised value in the loan. If you have a 30 year loan you must continue to pay the monthly premium for at least 5 years regardless of your balance. The link below provides details.
    What you may have heard on the radio is that they are considering changing the premiums and requiring the monthly MIP to be paid for the entire loan, similar to what was done with USDA loans.

    http://portalapps.hud.gov/FHAFAQ/controllerServlet?method=showPopup&faqId=1-6KT-1670

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