Finance
What is 'mortgage insurance premium' (MIP) for FHA loans and when can it be removed?
AMIP can never be removed
BMIP on FHA loans with down payments under 10% is required for the life of the loan; for loans with 10% or more down, MIP can be removed after 11 years✓ Correct
CMIP is automatically removed when the loan balance reaches 80% LTV
DMIP can be removed at the borrower's request after 2 years
Explanation
For FHA loans originated after June 2013, MIP remains for the life of the loan if the down payment was less than 10%. If the down payment was 10% or more, MIP can be removed after 11 years.
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