Comments on: When Can I Stop Paying FHA Mortgage Insurance?

By: CAROL

CAROL — Wed, 09 Jun 2010 03:58:24 +0000

@Jan - Go here Jan. This is the document all FHA borrowers must sign both when they apply and when they close their loan. If you have an FHA loan then you should have this disclosure in your packet of paperwork. See the area highlighted in yellow. Reply revised with updated form June 8, 2010.

By: Jan

Jan — Tue, 02 Feb 2010 22:04:29 +0000

all this time i thought i could get my house appraised and stop paying the mortgage insurance on my fha loan. why are mortgage people saying we can get an appraisal? i have heard this from more than one lender. not that i distrust you, but where can i read this from fha? is there a link to fha where i can read it?

By: Carol

Carol — Mon, 27 Jul 2009 15:03:52 +0000

@Lisa. Unfortunately no. That would be generous if so. Like other insurance, during the time when you are paying mortgage insurance, you are covering the cost for a potential loss. Compare to auto insurance. If you sell your car, you would not get back the insurance premium you paid for the prior year. Same for 99% of insurance.

For FHA, in some cases, it is possible to get back the “unearned” premium for upfront mortgage insurance paid at closing. This will vary depending upon whether anything “unearned” remains and what type of subsequent mortgage transaction you enter into.

Hope this was helpful.

By: Lisa

Lisa — Sun, 26 Jul 2009 16:44:55 +0000

once i do stop paying the insurance for fha, will i get a refund for what i already paid?

By: Carol

Carol — Mon, 29 Jun 2009 19:04:05 +0000

That’s right Marcus. If you have an FHA loan and you want to refinance to get rid of the mortgage insurance, you must have at least 20% equity. For example, if you owe $160,000 on your FHA loan, your home would have to appraise for at least $200,000 in order to refinance to a new conventional mortgage with no mortgage insurance. If you have the value you need, and rates are low enough to make it worthwhile, I suggest you not put off refinancing. The economy is still very fragile. I can help you if the home is in New Jersey. Otherwise, contact another professional and have them review your situation. Good luck.

By: marcus

marcus — Mon, 29 Jun 2009 15:03:03 +0000

This was good explanation. I thought too I could stop paying that insurance when my home had more value. i will refinance as soon as I have 20%. is that what your saying?