I have to pay MIP on my loan . It is our first house and an FHA loan. The buy price was 139k . I paid 10k down and had the mortgage insurance premium(20.) financed in the loan at 1.5 %. I emailed chase and they sent a letter saying they are the servicer of the loan and cant drop it…. HUD will have to. I looked at HUDs website and they say they cant drop it , the mortgage company has to.
When I spoke to the rep on the phone(could barely know her) She said 3 conditions must be met. It must be paid for a minimum of 5 years,be current, and LTV ratio reach 78%.
HUD has a specific link on the wesite giving conditions , but its hard to know. I questioned the mortgage rep if I could get a new appraisal since weve made improvements and drop it. She said I could but we would have to contact HUD with the new appraisal. She also said the LTV ratio is not on the loan price , but the buy price(before down payment.) Noone there is helpful and would like some answers.
To be clear, after the down payment, the loan 129920. was 129k plus the mip of 1920. I am confused about the LTV. Is it the new appraise value % compared to the buy price? (She said not counting down payment) Is this amount before the financed 1920 mip? Who do I contact with the appraisal to drop it? Both are telling me the other one has to drop it. I get the distinct feeling that Chase does not want be to drop it. Had this loan 3 years. I pay at least 0.00 additional principal each month. Never been even one day late.
Please someone give me specifics of what I would need to do to get it drop. It would save . a month I could place toward my principal and that is a lot of interest saved- thousands. I have painted , place on new roof and added skylights. Carpet is next. What specifically do I do and what are the laws with HUD? Which one has to drop it? I keep gettng the run around. You can email me with any more details needed. thanks
Please dont respond with promotions or solicitations. I only want the law concerning dropping the mip. I have a fantastic rate and am in no way behind.I have no other loans and I am in no way drowning in debt(thus paying extra principal) My loan is going fantastic, just thought I would eliminate any uneeded extra payment.
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3 years,
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mortgage insurance premium,
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Ok…the three conditions are:
The loan amount must be less than .78×139000= $108420.
You must be current and usually the lender requires you have never been 30 days late on a payment.
You must have had the loan at least 5 years.
An appraisal is not necessary because the current value is immaterial. The issue is based on the original sales price.
If you have met these three conditions contact loan servicing for your lender in writing (certified mail) and request waiver of mip. The payment on mip is .5%. In other words, if your interest is 6%, then your payment is really calculated on 6.5%.
On the plus side, mip will be tax deductible on schedule A on your tax return for 2007 along with the interest and taxes.
Hope this helps. Getting out of mip on FHA is somewhat hard. On the other hand up to about 5 years ago, you could not get rid of it under any circumstances.