How can I eliminate my FHA PMI?
Your 3.50% equity has grown to over 20% thru home value appreciation.
How can you eliminate the FHA monthly PMI/MIP?
Rising home values are a gift to borrowers with a FHA mortgage with values increasing over 20% in much of the U.S. in the last few years. If you have an FHA loan that benefited from the loan down payment option, your loan to value ratio is less than 80% which allows you to eliminate your PMI! One important note, is that new regulations prevent your existing lender from directly doing this!
FHA loans have 2 types of insurance that burden a home buyer.
1) Monthly Insurance Premiums (MIP): Paid monthly as part of your loan amount. We want to get rid of this!
2) Upfront Mortgage Insurance Premium (UFMIP): which is built into your loan amount.
The likely reason you chose an FHA loan was for the benefit of having a low down payment of 3.50%. If you had the 20% when you purchased the home, you would have opted against the FHA program. No one wants to be on this loan program if they have another option.
If your loan funded after June 2013, you cannot have your PMI eliminated from your current lender. However, we can help you refinance into a conventional loan which has no PMI saving you $100's/month.
My goal with this blog is to save you as much as possible as soon as you are eligible. The process of refinancing into a conventional loan is easier than you think and there are many added benefits.