For FHA loans greater than 90% LTV, how long does MIP stay on?

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Multiple Choice

For FHA loans greater than 90% LTV, how long does MIP stay on?

Explanation:
Mortgage insurance on FHA loans is tied to how much you put down. If the down payment is less than 10% (that is, the loan-to-value is greater than 90%), the annual MIP is required for the life of the loan. In other words, there’s no automatic cancellation after a set number of years for this high-LTV scenario; the MIP remains as long as you have the loan unless you refinance into a non-FHA loan or pay the loan off. This contrasts with cases where a larger down payment might allow for cancellation after a set period, but for LTV over 90%, the insurance stays for the life of the loan.

Mortgage insurance on FHA loans is tied to how much you put down. If the down payment is less than 10% (that is, the loan-to-value is greater than 90%), the annual MIP is required for the life of the loan. In other words, there’s no automatic cancellation after a set number of years for this high-LTV scenario; the MIP remains as long as you have the loan unless you refinance into a non-FHA loan or pay the loan off. This contrasts with cases where a larger down payment might allow for cancellation after a set period, but for LTV over 90%, the insurance stays for the life of the loan.

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