Dropping Conventional Mortgage Insurance Rules Automatic Termination ( PMI is Automatically Terminated without you asking) PMI is automatically removed when your Loan to Value (LTV) gets to 78% Important Notes for Automatic Termination:
- Loan to Value is based upon Original Value (not a new appraisal)
- Based Soley on regular amortization (not prepayment of principal)
- Mortgage payment must be current
Borrower Requested Termination (You request termination from your lender) PMI is removed when Loan to Value (LTV) reaches 78% Important Notes for Borrower Requested Termination:
- You must submit cancellation request in writing
- You must have good mortgage payment history
- You must be current on your mortgage payments
- You must have and Appraisal or Certification stating that property has not decreased below the original value
- You may not have 2nd liens or subordinated loans on property
Dropping FHA Mortgage Insurance Premium Rules
For all loan types with the exception of: Title I and Home Equity
Conversion Mortgages (HECM) the following chart applies.
|
Term |
LTV (%) |
Annual MI Duration for Case Numbers Ordered Prior to June 3, 2013* |
Annual MI Duration for Case Numbers Ordered On or After June 3, 2013 |
|
≤ 15 yrs |
≤ 78 |
No annual MIP |
11 years |
|
≤ 15 yrs |
> 78 – 90.00 |
Cancelled at 78% LTV |
11 years |
|
≤ 15 yrs |
> 90.00 |
Cancelled at 78% LTV |
Loan term |
|
> 15 yrs |
≤ 78 |
5 years |
11 years |
|
> 15 yrs |
> 78 – 90.00 |
Cancelled at 78% LTV & 5 yrs |
11 years |
|
> 15 yrs |
> 90.00 |
Cancelled at 78 & 5 yrs % LTV |
Loan term |
*Loans closed PRIOR to January 1, 2001 are NOT eligible for termination of MIP (monthly insurance premium)
NOTE: Loan-to-Value for purchases based on the sales price or appraisal value, whichever is lower Loan-to-Value for refinances based on appraisal value Loan-to-value figured on base loan amount WITHOUT UFMIP
