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Loan Balance at Final MIP Date and
Final Monthly MIP Payment Date
The information displayed in the Loan Balance at Final MIP Date and Final Monthly MIP Payment Date fields depends on the following:

FHA Case Number Assigned on or after June 3, 2013

FHA Case Number Assigned before June 3, 2013 and Closing Date after December 31, 2001
FHA Case Number Assigned on or after June 3, 2013: Per Mortgagee Letter 2013-04, the duration of monthly (annual) mortgage insurance premium (MIP) payments is based on the amortization term and loan-to-value (LTV) ratio at loan origination as follows:
Term LTV at Loan Origination Monthly MIP Payments
Less than or equal to 15 years Less than or equal to 78% 11 years
Less than or equal to 15 years 78% to 90% 11 years
Less than or equal to 15 years Greater than 90% Loan term
Greater than 15 years Less than or equal to 78% 11 years
Greater than 15 years 78% to 90% 11 years
Greater than 15 years Greater than 90% Loan term
The Loan Balance at Final MIP Date is displayed as N/A (not applicable). The Final Monthly MIP Payment Date is either 11 years from the date of insurance endorsement or the date of loan maturity (i.e., date the last monthly MIP will be assessed).
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FHA Case Number Assigned before June 3, 2013 and Closing Date after December 31, 2000: Monthly mortgage insurance premium (MIP) payments are made until the unpaid principal balance reaches 78% (or 22% equity) for cases under the Mutual Mortgage Insurance (MMI) fund that meet the eligibility requirements described in Mortgagee Letter 2000-46. (This threshold amount, displayed in the Loan Balance at Final MIP Date field, will be reached at the month/year displayed in the Final Monthly MIP Payment Date field.) In addition, for mortgages with terms of over 15 years, borrowers must pay monthly MIP at least five years from the beginning of amortization, regardless of when the 78% threshold is reached.
For cases with loan-to-value ratios below 78% or if the borrower has made a large down payment, the message Mortgage Amount is less than 78% of the Property Value will be displayed in place of the Loan Balance at Final MIP Date value. In these situations, the borrower is still required to pay monthly MIP for at least five years if the mortgage term is more than 15 years.
A letter from the Federal Housing Commissioner is sent to each mortgagor affected by the 78% rule to provide them with the key information including projected Final Monthly MIP Payment Date.
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Last revised: May 14, 2013

 
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