Eliminating Your Mortgage Insurance

Eliminating Mortgage Insurance can be done several ways.  Rules have changed and then changed again, as is evident of FHA, the most popular low down payment program in the industry. Also private mortgage insurance (for conventional loans) has had some changes as well, due greatly to the housing meltdown.  With appreciation beginning to make housing healthier many folks have begun to refinance and eliminate their mortgage insurance.  (Those who can’t or need to wait a while longer, please see the very important article in this Digest entitled: Tax-Deductible MI ends 2013, where if you have not already taken advantage of this, you may be able to on your 2013 tax return filing)

As mentioned above, housing appreciation has gone through the roof in many areas and we
are finding that many clients, whether they have an FHA or Conventional loan, with MI, are being able to refinance and eliminate the MI.  However, with interest rates going up it is important that anyone with MI, considering refinancing, do it ASAP.  If you have MI or know someone who does, please have them contact my office immediately for a free 10 minute review.

If you can’t refinance for one of several reasons and you must live with your MI, I have an article in more depth on tax deductibility of mortgage insurance on my blog at www.donparsons.com/newsletter which lays out when your MI will automatically drop off, and also what can happen after 2 years.  Caution, these two articles are very detailed, written for the industry.

Private Mortgage Insurance Cancellation: Your guide to Cancelling MI in accordance with the Homeowners Protection Act of 1998

When and How to Cancel Mortgage Insurance