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How many years must I pay mortgage insurance?

by sdietz444438 from Indianapolis, Indiana. Oct 8th 2014 Reply


Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

What type of Loan do you have Conventional or FHA and when was it taken out? this information can help determine: Conventional when you have a 79% LTV and if FHA taken out a after June 2013 it will never come off have refinance to conventional to remove if before June 2013 and you have paid 5 years and your LTV is below 78% you can request the MI to be removed.Any questions I can be reached 800-485-1387 ext 116 or email ballen@bankofengland1.com

Oct 8th 2014
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Joel Asbury (Winterwood)
#44 ranked lender in Indiana - 34 contributions

Depends on your loan and when you got it. Feel free to give me a call to talk about this. I'm curious to find out what you are considering and why this question came up. The best way to give you the full scenario is to talk about it. Thanks for asking the question and I look forward to hearing from you.

Oct 8th 2014
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Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

For conventional loan, until the balance is less than 80% of the purchase price.

Oct 8th 2014
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Joshua Wachowiak (Joshua.wachowiak)
#23 ranked lender in Wisconsin - 69 contributions

If the loan is a FHA and after June of 2013, the MMI (monthly mortgage insurance) doesn't drop off ever (as Brian Allen notes). If it is a FHA loan taken out prior to June 2013, then the MMI does drop off once you get to 78% automatically (based on the lower of the sales price or value at the time of the mortgage being last completed). It does have a 5 year minimum though.If you have a Conventional loan it depends on the lender and the PMI company. Most PMI companies have a minimum term of 2 years no matter what.If you feel you are at 80% or less, and if upon calling your lender, the PMI/MMI cannot be dropped, then you could look at refinancing. Currently interest rates are low and have recently dropped a bit, so it might be a good time to consider.

Oct 8th 2014
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Jason Vondrak (jvondrak)
#217 ranked lender in California - 1,741 contributions

That all depends on the type of loan that you have. If you have an FHA loan, it will likely be much more difficult to eliminate mortgage insurance than if you have a conventional loan. Once you reach 80% loan-to-value ratio with a conventional loan, you can request that mortgage insurance is eliminated.

Oct 8th 2014
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

Until you're required per the loan product that you have. If you would like to discuss the details of your loan scenario, be free to contact one of the qualified mortgage professionals here.

Oct 8th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,623 contributions

It varies based on the type of loan you have now.. If it's FHA, then depending on when your loan was initiated, it could be there for the life of the loan, for at least 11 years, or can drop once you have paid down 22% of your original purchase price/appraised value. If it's USDA, then most likely the MI will be there for the life of the loan. If you have a conventional loan, then once you have paid for at least 2 years, and once you reach 20% equity or more, you can call your lender and request that the MI be removed.. so long as the value is there to substantiate the 20% equity, they will drop the MI and you wont have to refinance to do it. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Oct 8th 2014
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