topic Mip removal in Mortgage Loans

Mip removal

girlblushes — Tue, 03 May 2022 00:24:22 GMT

Hello everyone, I'm new here so hopefully this is ok to post! My question is about mortgage insurance premiums. I have an FHA loan & when I bought my house, it was my 1st,I didn't know about this or the down payment needed to avoid it. Is there a way to remove it, aside from refinance? I see sites all over the internet sounding like it's possible, some say simply request it. My insurance just increased, making my monthly payment more than I can afford to pay, if that MIP could be removed, that would make all the difference! my house has increased DOUBLE since buying it, we have lots of equity, our ltv is less than 50%!!!! I'm trying to figure out the best way to lower my monthly payment, other than refinancing(which I don't think I'm able to do, or I would've last year when rates were historically low!) Is the removal of MIP the decision of the individual lender the loan is with? What options do I have with this, if any? Thanks in advance!!

Re: Mip removal

chiefone4u — Tue, 03 May 2022 00:43:20 GMT

@girlblushes wrote:
Hello everyone, I'm new here so hopefully this is ok to post! My question is about mortgage insurance premiums. I have an FHA loan & when I bought my house, it was my 1st,I didn't know about this or the down payment needed to avoid it. Is there a way to remove it, aside from refinance? I see sites all over the internet sounding like it's possible, some say simply request it. My insurance just increased, making my monthly payment more than I can afford to pay, if that MIP could be removed, that would make all the difference! my house has increased DOUBLE since buying it, we have lots of equity, our ltv is less than 50%!!!! I'm trying to figure out the best way to lower my monthly payment, other than refinancing(which I don't think I'm able to do, or I would've last year when rates were historically low!) Is the removal of MIP the decision of the individual lender the loan is with? What options do I have with this, if any? Thanks in advance!!

It is my understanding that all FHA loans originated after June 13, 2013 have a permanent MIP in the loan payment and can't be removed without refinancing the loan.

If your home has doubled in value since purchase, you should be able to refinance as long as you have the income required to pay the new mortgage and your scores are 620+ (more lenders open up at 640+).

If your Debt to Income is questionable or to high, as long as you don't think you'd have to depend on your credit cards again... you could do a cash out refi. Having the lender pay off debts with proceeds from the refi allows them to ignore the monthly payments associated with the debts being rolled into the new loan.

Be sure you can afford the new payment without needing to lean on credit cards or other loans again or you could find yourself loosing your home from the new (possibly) higher payment. <<-- just a warning, you haven't included enough information to know if this is needed (others reading this thread may need this warning).

Re: Mip removal

MauiMan85297 — Tue, 03 May 2022 16:33:36 GMT

You must refinance to a conventional loan as the FHA loan has MI for either 11 or 30 years (30 if you put down less than 10% when you purchased). Regardless of equity FHA always has MI.