Financing strategy · Refinance
Removing Mortgage Insurance
Mortgage insurance protects the lender, not you, and ending it can meaningfully reduce your payment. On conventional loans it is generally cancellable once you reach the equity thresholds in your loan documents and investor guidelines. On most current FHA loans, the annual premium remains for the life of the loan, so the usual path is refinancing into conventional financing once you qualify.
Who it is designed for
- Conventional borrowers whose home value has increased
- FHA borrowers who now have sufficient equity and credit for conventional financing
- Homeowners who have paid the balance down substantially
Eligible occupancy types
- Primary residence
- Second home
- Investment property where applicable
Down payment or equity
Not applicable, though bringing funds to reach a target loan to value is sometimes an option.
Major benefits
- Removes a monthly cost that does not build equity
- On conventional loans, cancellation may be possible without refinancing
- Improves monthly cash flow when successful
Important considerations
- Servicer cancellation requirements, including seasoning and payment history, must be met
- A value based cancellation request may require an appraisal you pay for
- Refinancing out of FHA means accepting current market rates and closing costs
How qualification generally works
- Current loan to value based on an accepted valuation
- Payment history on the existing loan
- For a refinance, standard income and credit review
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
Frequently Asked Questions
Related programs and next steps
Rate and Term Refinance
Change your rate, your term, or your loan type without taking cash out.
Learn more CoreConventional Loans
The most widely used financing for primary homes, second homes and rentals.
Learn more CoreFHA Loans
Government insured financing with flexible credit and down payment guidelines.
Learn moreConsidering removing mortgage insurance?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.