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

The answer is: Yes, and No. It ultimately depends upon whether you use conventional or nonconventional financing. See below:

• Fannie Mae (Conventional): Private Mortgage Insurance (PMI) will drop off once the loan balance reaches 78% of the original purchase price.
• Freddie Mac (Conventional): Private Mortgage Insurance (PMI) will drop off once the loan balance reaches 78% of the original purchase price.
• FHA: Mortgage Insurance (MI) will remain for the life of the loan. There are a couple circumstances when FHA MI will drop off after 11 years. Please Contact a mortgage expert for more info.
• USDA: Mortgage Insurance (MI) will remain for the life of the loan.
• VA: Mortgage Insurance (MI) will remain for the life of the loan.

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To learn more about specific mortgage requirements, be sure to speak with an experienced mortgage broker.