Do I have to pay mortgage insurance for the life of the loan?

No, you don’t always have to pay mortgage insurance for the life of your loan. Whether you do or not depends on the loan type. Conventional loans typically allow for removal of mortgage insurance under particular terms, while FHA and USDA loans often require it for a longer period or the full term.

Here’s how it breaks down by loan type:

• Fannie Mae and Freddie Mac (Conventional): Private Mortgage Insurance (PMI) will drop off once the loan balance reaches 78% of the original purchase price.

• FHA: Mortgage insurance will most always remain for the life of the loan. However, there are a couple circumstances when it will drop off after 11 years. Contact a mortgage expert for more info.

• USDA and VA: Mortgage insurance will remain for the life of the loan.

Have specific questions about how long you pay mortgage insurance? Schedule a meeting with an expert today.