• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Sonny Florida Real Estate

Florida Luxury Homes from Sonny Solomon

Header Left

Header Right

Header Left

Header Right

  • Home
  • Luxury Home Communities
    • Boca Raton Luxury Homes
    • Palm Beach Luxury Homes
    • Singer Island Luxury Homes
    • Treasure Coast Luxury Homes
    • Vero Beach Luxury Homes
  • Tips & Resources
    • For Home Buyers
    • For Home Sellers
    • Mortgage Tips
  • About
    • Meet the Team
    • Testimonials
    • Contact Us
  • Home
  • Luxury Home Communities
    • Boca Raton Luxury Homes
    • Palm Beach Luxury Homes
    • Singer Island Luxury Homes
    • Treasure Coast Luxury Homes
    • Vero Beach Luxury Homes
  • Tips & Resources
    • For Home Buyers
    • For Home Sellers
    • Mortgage Tips
  • About
    • Meet the Team
    • Testimonials
    • Contact Us

Removing Mortgage Insurance From FHA Loans Issued Prior To June 3, 2013

Important updates on Removing mortgage insurance from FHA loans issued prior to June 3, 2013 – posted by Sonny Solomon at The Keyes Company

May 1, 2015 //  by Sonny Solomon

Many home buyers who obtain FHA mortgages were attracted to the low down payment feature. Given that mortgage insurance is typically assessed on loans for greater than 80% of the value, most FHA home buyers have mortgage insurance payments. The process for removing that fee depends on when the loan was issued by FHA. Below is information on removing mortgage insurance from FHA loans issued prior to June 3, 2013.

Removing Mortgage Insurance Gradually

With each mortgage payment made, you pay down a fraction of your loan. In the early several years, the fraction going towards interest is higher than the amount towards the principal, but this eventually changes. Mortgage insurance is ultimately removed when the loan is reduced to 78% of the original purchase price. You can also make extra payments to principal to get to this mark sooner.

With many loans, you can request that mortgage insurance be removed when the balance reaches below 80%. It definitely makes sense to do this and eliminate mortgage insurance costs for a few more months. Refer to your loan documents to see if this is allowed.

Improvement in Home Values

Loan-to-value percentages are determined by your loan amount and the initial price or current market value. If home values increase in a short time, your loan balance might be less than 80%, thereby removing your mortgage insurance. To remove mortgage insurance using this option, you must call your Lender to order an appraisal. You are invoiced the cost, but it pays for itself if your mortgage insurance disappears as a result. Additionally, you must have had your loan for at least 5 years to qualify.

More on Removing Mortgage Insurance From FHA Loans

Mortgage terms typically get modified over the years. The above is simply an overview of normal FHA loan terms. Be sure to refer to your specific documents regarding removing mortgage insurance from FHA loans. You can also call a mortgage officer for more assistance.

Category: Mortgage InfoTag: Florida, Mortgage Insurance, FHA Loans

About Sonny Solomon

I am here to help you! I will do everything for you: Safeguard your interests, negotiate prices, arrange financing, and manage the closing. And the best news is that my services are free to you. There are no hidden charges or obligations, because all fees are paid by the sellers. Contact me for assistance with your home search.

Previous Post: « Updated FHA Mortgage Limits For Florida
Next Post: Home Addition Financing Options In Florida »

Primary Sidebar

Blog Topics

  • Boca Raton FL (2)
  • Real Estate Information (142)
    • Home Buyer (61)
    • Home Repair (21)
    • Home Seller (23)
    • Market Updates (4)
    • Mortgage Info (42)
  • Singer Island FL (1)
  • Treasure Coast FL (1)
  • Boca Raton Homes (1,788)
  • Palm Beach Homes (676)
  • Singer Island Homes (29)
  • Palm Beach FL (8)

Find Content

Site Footer

Copyright © 2023 Sonny Florida Real Estate · All Rights Reserved · Powered by Lanergy Solutions