PMI Question?

Hexslinger

 My husband and I are probably going to be getting an FHA loan with the 3.5% down payment. With that comes the mortgage insurance. Is that something that we have to pay for the life of the mortgage or do we get to stop paying it once we have met the traditional 20% on our mortgage?

USER876

I believe it stops when you reach 20% equity......what you owe vs the value of your house.  A few yrs from now the value may go down so you will have to keep paying until you get that 20%.

lmdbww

We bought our current house with FHA and were told that we cannot remove PMI unless we fully refinance (and have enough equity), or have the actual loan paid down to 78% LTV (loan to value ratio). Appraisals would mean nothing unless we were refinancing.

tickledpink1843

We were told that with an FHA, not only do you have to meet the 20 percent, but you have to have carried the PMI for 5 years. So, even if you meet the 20 percent within a year or two, you can't take off the PMI because it hasn't been 5 years.

 

Hope that helps.

lil_jen051708

tickledpink1843:

We were told that with an FHA, not only do you have to meet the 20 percent, but you have to have carried the PMI for 5 years. So, even if you meet the 20 percent within a year or two, you can't take off the PMI because it hasn't been 5 years.

 

Hope that helps.

This is what we were told as well earlier this summer.  Also PMI on FHA loans has jumped up due to a new calculation in April or do.  We need up with a 5%down conventional.  We pay PMI for a minimum of 12 months and will just need an appraisal to drop it.