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Emilie Christiansen
Long and Foster Real Estate, Inc.
10805 Hickory Ridge Rd
Columbia, MD 21044
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  Can I drop my PMI on a FHA Loan?

I have an FHA mortgage that is nine years old. It was for $80,000 and has been reduced to $64,000. I have tried to get the carrier to cancel the mortgage insurance but they refused. Is there new legislation the horizon regarding this? --S. C. D

December 19, 2001

ANSWER: Yes, for new FHA loans placed after January 1, 2001, mortgage insurance can be dropped when equity reaches 22 percent of the original appraised value.

With an older loan like yours, however, you must carry FHA mortgage insurance for a number of years, depending on the size of your down payment.

When you took out your loan nine years ago, you agreed to pay that additional premium. Your mortgage papers should explain just how long that will be in your particular case.