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Mortgage Insurance - Article - Removing Mortgage Insurance
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The requirements for removing your mortgage insurance premium (MIP) or private mortgage insurance (PMI) depend on your loan. Keep in mind the best way to figure out when you can remove your mortgage insurance is to call us. Here are some general guidelines.
For FHA loans, MIP may be canceled when your loan meets certain criteria, depending on when you either closed on your loan or applied for it.
- Closed between July 1991 and December 2000: You'll have MIP for as long as you have the loan.
- Applied between January 2001 and June 2013: MIP will be removed when you reach 78% loan-to-value (LTV), and you've owned your home for at least 5 years.
- Applied after June 2013: If your original loan amount was less than 90% LTV, MIP will be removed after 11 years. If the loan amount was 90% LTV or more, you'll have MIP for as long as you have the loan.
Call us at 1-866-596-2739 if you have questions about removing your MIP.
For loans covered by the Homeowners Protection Act of 1998 (HPA), you can request to have PMI removed when your balance reaches 80% loan-to-value (LTV) based on the original value of your home. If you're requesting to have PMI removed, you:
- Have to get an appraisal through Republic Bank (at your own expense) to confirm your home's value hasn't declined since closing
- Must not have had any 30-day late payments within the past 12 months
- Must not have had any 60-day late payments within the last 24 months
Otherwise, we'll automatically cancel it when your balance reaches 78% LTV if you're up to date on your payments.
If your home's value went up since closing, you may be able to cancel your PMI earlier, based on its current value. In some cases this can happen if you've made substantial improvements to your home. You'll need to get an appraisal to confirm its value. See our FAQs to learn more.
Clients in AK, MN, and NY may also have additional options for canceling PMI.
The guidelines don't apply to every loan so be sure to call us at 1-866-596-2739 to get the specifics on when you can remove your PMI.
Calculating your LTV
To find your LTV, divide your mortgage balance by the original value of your home.
Mortgage Balance ÷ Home Value = Loan to Value Ratio