Cancelling FHA Mortgage Insurance: Having taken an FHA mortgage. If the borrower feels that his current mortgage balance is 80% or less than the current market value. FHA makes it almost mandatory to continue paying mortgage insurance regardless of what the new loan amount is and regardless of what the new home value is.
When and How to Cancel FHA Monthly Mortgage Insurance (MIP)
Hence for the borrower to come out of FHA. He will have to refinance the home and get himself into conventional loan backed by Fannie Mae and Freddie mac which is also government bodies.
Its important that the borrower switch from FHA to conventional because with no policy to waive Mortgage insurance. Having moved into the conventional bucket. The monthly mortgage insurance premium is essentially a wasteful expense. That money saved would add to the borrower's savings each month or the borrower can use those savings to apply towards other expenses.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154
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