…..The second premium is the Monthly Mortgage Insurance Premium or MMIP. This premium is included with your monthly mortgage payment to your Lender. The premium is calculated based on a percentage value of the loan amount determined by the amount of your downpayment (and in recent history, your credit score, although that requirement has been cancelled). You will pay this monthly premium until your equity position in the home reaches 78% of the value at time of closing. It may be possible to eliminate FHA MMIP after 5 years of good payment history.”
I read different things in different places. But what concerns me is that “you may be able to cancel the FHA MMIP after 5 years of good payment history.
So, what’s the deal? Is that accurate? If it is, then will i lose money on a 20% down loan if I can get FHA insurance cancelled after 5 years? I didn’t get any value for my 20% down if that’s the case…
