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Many homebuyers ask FHA if they can stop paying FHA mortgage
insurance premiums with their mortgages.
FHA insures mortgages so that lenders will be encouraged to
make more mortgages available for people. The FHA mortgage
insurance agreement is between FHA and the mortgage company,
so you must contact your mortgage company and ask them what
they require to drop the insurance. Most mortgage companies
will want you to have a substantial amount of equity in your
home.
For new mortgages insured as of January 2001, HUD/FHA has
clarified the requirements for removing insurance premiums
for some types of mortgages. |
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