Financial Information
How long do you have to pay mortgage insurance on FHA loans?
I have developed a number of mortgage insurance for about four years and my house payment ever upward. Yes, I have a fixed interest rate.
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#2 written by loansbytami 1 year ago
You DO NOT need to refinance to drop the mortgage insurance! Don’t let unscrupulous loan officers tell you that! I am a mortgage consultant and am infuriated with those unscrupulous “others” out there who try to take people for a ride!
If your current loan amount is less than 80% of what your property is currently worth, all you have to do is call your lender, tell them you want to drop your mortgage insurance and they may have a list of appraisers that they will require you to use to verify that the loan is, in fact, only 80% of the property’s newly appraised value.
Why pay thousands in refinancing when all you SHOULD pay is $350 for an appraisal????
Hope this helps! -
#3 written by david f 1 year ago
Unfortunately FHA mortgage insurance is for the life of the loan. If your payment keeps going up and you have a fixed rate mortgage it would have to be going up because of an increase in your real estate taxes or your homeowners insurance. If you have been in the house for four years and have a good payment history you may want to consider refinancing to a conventional loan. If your house will appraise for enough to show that you have more than 20% in equity you may be able to refinance on a conventional and not pay any mortgage insurance.
David
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I am a mortgage banker. On the FHA loan program regardless of whether you have 20% equity in the property the loan requires MI at the time you OBTAIN the loan. But it will drop off after 5 years if you have at least 22% equity in the property. At the 5 yr mark, if you do not have 22% equity it will not come off until you do. You will need to contact the lender to drop the MI premium.