3 ms·

Will you have PMI for the duration of your FHA loan, or do you wait to refinance by the time you have 20% equity?

• thrower123 7y ago
  Once you hit 22% of the principle paid off, the PMI must be automatically ceased. Once you have hit 20%, even if that is ahead of schedule, you can request that it be cancelled[1]. In many cases, however, if property values have gone up, or you have done work to the property, you can get the property reassessed, and refinance into a new loan based on the newly assessed value, and get rid of the PMI even faster than that. This is what I did on my house - between the real estate market bouncing back after the financial crisis, and some renovations I did, after two years the value of my house increased almost 50%. My credit score had also gone up, and interest rates had gone down, so I also was able to get a better interest rate. [1] https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-p...
  • ender341341 7y ago
    For FHA loans you can't cancel the PMI (since 2013 I think), it's there for the length of the loan.
    • masonic 7y ago
      Once you are below 80% LTV, refinancing without PMI should be easy.