When Does Mortgage Insurance Go Away?
All Conventional Loans
By Request After 2 years IF 75%-80% LTV**
By Request By Home Improvement IF 75% LTV **
Automatically By Original Schedule 78% LTV *
FHA Loans Originated > 6/3/2013
Original Loan < 90% LTV then 11 Years
Original Loan >90% LTV then full loan term
FHA Loans Originated < 6/3/2013
Original Loan >15 Years and >78% LTV then 78% LTV based on Original Purchase Price
Original Loan >15 Years and <78% LTV then 5 Years
Original Loan 15 Years and >78% LTV then 78% LTV based on Original Purchase Price
Original Loan 15 Years and <78% LTV then No MIP
* Note that the 78% loan-to-value calculation is not based on the current appraised value of the home; it's based on the DATE when the value is SCHEDULED to reach 78% per the Amortization Schedule (not a pay down or value increase)
** Based on new lender ordered, borrower paid appraisal upon written borrower request. In recent years most lenders have been agreeable to removing pmi at 80% LTV instead of 75%.
*** Note that the 78% FHA loan-to-value calculation is not based on the current appraised value of the home; it's based on the FHA's last known value of the home. In many situations, the last known value is the home's purchase price
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