Mortgage Insurance Is A Waste Of Your Hard Earned Money!
What Is It?
FHA Mortgage Insurance Premium (MIP) is a financial guaranty for FHA loans that helps reduce loss in the case of a default by the borrower. FHA acts as the insurer for a lender that services FHA loans.
When Can I Stop Paying FHA Mortgage Insurance?
There are two ways to remove your FHA mortgage insurance from your loan:
1) Refinance to a conventional loan without mortgage insurance.
2) Wait for automatic termination when the balance reduces to 78% compared to the original value of the property. Unfortunately, this does not take into account any of the property’s appreciation gained over the years. Making your normal 30 year payment, the time frame is approximately 11 years for the automatic termination. FHA loans obtained after June 3, 2013 have no mortgage insurance termination date and remains for the life of the loan.
The surest way to get rid of your mortgage insurance is to refinance to a conventional loan without mortgage insurance. The first step in this process is to verify the value of your home to see if you have gained enough equity to meet conventional loan requirements. Go to http://www.MortgageInsuranceRemoval.com for your Free Automated Home Valuation Report.