How do I get rid of FHA mortgage insurance?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
On most modern FHA loans the annual premium stays for the life of the loan, so the standard way to remove it is to refinance into a conventional loan once you have 20% equity.
Given Florida's appreciation, many owners reach 20% equity within a few years and refinance out. We'll watch your equity and run the refinance the moment it saves money.
The refinance route
On most FHA loans, the mortgage insurance stays for the life of the loan, so the main way to remove it is to refinance into a conventional loan once you have at least 20% equity.
Refinancing swaps your FHA loan for a conventional one with no monthly insurance, which can lower your payment noticeably.
The other paths
If you put 10% or more down originally, FHA insurance drops off automatically after 11 years. Loans from before mid-2013 also follow different, easier removal rules.
The best move depends on your equity and rate. Apply now and we will run whether refinancing to cancel FHA insurance saves you money today.