Asked by Erin  |  Submitted February 12, 2014

I've been paying Mortgage Insurance for years. How long do people usually have to pay it?

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  Answers  |  3

February 12, 2014

Hi Erin:

That depends on the type of loan you have. If it's an FHA loan, the new guidelines state that the MI will stay on for the life of the loan. If it is conventional, it will generally be for somewhere around 5 years. However with a conventional loan, once you reach a 20% equity position (by principal reduction or market appreciation, or both), you can call your servicer to have it removed in most cases.

Angie | 08.11.15 @ 14:05

Am I incorrect in thinking that a certain amount is returned to you once the %20 equity is reached if all payments have been made on time?

$commenter.renderDisplayableName() | 09.23.20 @ 01:58


February 02, 2015

It's all about the equity. I'd recommend having a lender or realtor pull some recent comparable sales in your area to get an idea on your home's potential value. I use several websites for my clients, to give us the best idea on what their homes MAY appraise for. Of course, the final/real value is determined by an independent appraiser once the loan process starts. It is important to note that even if you don't have 20% equity now, if you have MORE than you did at the time you took out the current loan, refinancing may lower your monthly PMI cost and shorten the time you have to pay PMI. I also offer lender paid mortgage insurance to my clients as a means of avoiding monthly mortgage insurance costs.

$commenter.renderDisplayableName() | 09.23.20 @ 01:58


November 06, 2015

For an FHA loan you will pay mortgage insurance for the life of the loan unless you re-finance with at least 20% equity. For a conventional it will automatically come off once you have 22% equity in the home, but you can request it be removed at 20% equity.

$commenter.renderDisplayableName() | 09.23.20 @ 01:58