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# How do I figure what my 20% value is on my home to eliminate MIP asap?

• August 02 2014 - Wixom
• 0
0Yes

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• 344 contributions
Depending on when you obtained the FHA mortgage, you may never be able to get rid of it until you refinance into a conventional. You really will not know for sure until you get the home appraised.  It is a very simple calculation. Take the value of the home and multiply times .80 and if your principal balance is below this then you may possible have enough equity to eliminate the MIP by refinancing into a conventional mortgage. You will want to pay the closing costs out of your own pocket to be sure you can avoid it.
• August 04 2014
• 0Yes

@Justin:  Thanks for the correction and being gracious to the decimal point police!    I wasn't sure how to state it, because either the decimal point had to be slipped over two places to the right or removed altogether.

Cups of coffee are available.
• August 02 2014
• 1Yes

• 5303 contributions
Ha, oops, two decimal points actually, 125%.
• August 02 2014
• 1Yes

@Justin:

Respectfully... perhaps there is a typo in your post, perhaps an extra decimal point
• August 02 2014
• 1Yes

• 10017 contributions
If you have MIP then you have an FHA loan. The drop point is 78% so you need 22% equity and at least 5 years of payments if you bought the home before June 2 2013 ( aprx ). When did you purchase the home? If the appraised value was at least the same as the purchase price, then the price you bought for is the starting point, multiply that figure by 78% and that is what your loan balance has to reach to remove, that assumes you didn't buy your home after June 2013 and you have a 20 Yr , 25 Yr, or 30 Yr loan.
• August 02 2014
• 2Yes

• 5303 contributions
Multiply your loan balance by 1.25% and the result is the home value you would need to be at 80%.
• August 02 2014
• 0Yes