Mortgage Insurance

FHA loans require Mortgage Insurance Premiums (MIP) and typically involve two payments, an upfront premium and an additional annual payment.

The amount of MIP you pay for both depends on the size of your loan. Your annual MIP is divided up and included as part of your monthly mortgage payment.

Removing MIP is dependent on a couple of factors, one is loan-to-value and the other when your FHA loan was first originated.

If your FHA case number was assigned after June 13, 2013 there are no early termination options. The mortgage insurance will be required on the loan for 11 years or life of loan depending on the original loan to value at time of closing.

If your FHA case number was assigned between January 1, 2001 and June 12, 2013, please call Customer Care at 888.504.6700 Monday – Friday 8:00 a.m. – 4:00 p.m. CT for a review so we can send you the requirements.

Private Mortgage Insurance (PMI) is extra insurance that a lender requires a borrower to pay if the borrower puts less than 20% of the home’s value in a down payment at loan origination.

Based on the original information in your loan agreement, we’ll project the date when your LTV ratio will hit 78%. And we’ll plan to cancel your PMI on that date.

Note that this projected date for automatic cancellation is fixed and can’t be moved up. However, if you believe your loan qualifies for PMI cancellation before the projected date, you can submit a cancellation request.

You need at least 20% equity in your home to request cancellation, and some other conditions may apply. Here are the main ones:

• Your loan must be current.
• In the last twelve months, you can’t have been more than thirty days late on any payment.
• In the last twenty-four months, you can’t have been more than sixty days late on any payment.
• We may need to order a professional appraisal of your property to verify its current value. The appraisal needs to happen within ninety days of your PMI cancellation request.

To discuss your specific requirements for requesting PMI cancellation, please contact Customer Care at 888.504.6700 Monday – Friday 8:00 a.m. – 4:00 p.m. CT

Mortgage Insurance (MI) lowers a lender’s risk when making a home loan. In most cases, if you pay at least 20% down on your home, you’re not required to carry MI. And when you are required to carry it, you may be eligible to request cancelling it when you’ve reached 20% equity in the home.

Depending on the type of loan you have, you’ll pay for mortgage insurance in different ways. It can either be private mortgage insurance (known as PMI) or FHA mortgage insurance premiums (known as MIP).