Mortgage Insurance – When Can it Be Cancelled?

If you have a conventional mortgage, and put less than 20% down when you purchased your home (or less than 20% equity when you refinanced your home) your monthly payment includes “mortgage insurance“.

Depending on your interest rate, for a 30- year term mortgage and if you put 5% down payment, it will take approximately 11 years to reach 78% loan to value; with 10% down, it will take you about 9 years, and with 15% down, 6 years.

If you have an FHA mortgage, mortgage insurance is automatically included in your monthly payment.

Both types of loans have certain rules where mortgage insurance must be eliminated after a certain period of time – and under certain conditions.

Dropping Conventional Mortgage Insurance Rules:

Automatically Deleted When:                                                                         

You Request Mortgage Insurance be Deleted

Dropping FHA Mortgage Insurance Premium Rules

If your loan closed PRIOR to January 1, 2001 you are NOT eligible for termination of MIP ( monthly mortgage insurance premium ) if closed on January 1, 2001 and after, MIP will automatically terminate under the following conditions.

More than 15-year term

15- Year Term or less

SPECIAL NOTES:

Share and Enjoy:
  • Print
  • Digg
  • StumbleUpon
  • del.icio.us
  • Facebook
  • Twitter

Comments

Got something to say?