Wipe away FHA's MIPs?

6 Replies

When applying for a FHA insured loan and you get the MIPs, do those MIPs stay with you till you own the house 100% free and clear? Or do the MIPs stop when the loan to value ratio goes below their requirements?

Mortgage insurance stays with an FHA loan for the entire life of the loan, the only way to get rid of it is to refinance out of the loan or pay if off in its entirety.

With FHA, less than 10% down, MIP is for the life of the loan. 10% down or more, 11 years. No drop off after a certain LTV later.

Patrick is correct (for new FHA loans anyway). If you have an older FHA loan you will be grandfathered into old FHA rules, and have the opportunity to drop the insurance after 5 years and hitting 78%.

This was something that I was previously wondering myself but as soon as you hit 78% LTV you can refi and lose the MPI as mentioned by @Patrick Connell

As Patrick mentioned, MIP is a single pay premium to the outstanding loan over the course of the term and will not be effected by the LTV as the loan is reduced. Refinance or sell is the only way out, you can't even avoid it by dying, your heirs will have to pay it! :)

awesome! Thank you all for the information

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