In 1998, the law permitted borrowers to have their mortgage insurance, whether private or FHA, removed from their loan when their remaining balance reached 78% of the value of the house. HOC defined “value” to mean the lower of the original sales price or appraised amount. This rule still applies to conventional mortgages (not government insured). Beginning April 1, 2013, new FHA insured loans carry monthly mortgage insurance until the mortgage is paid off. FHA loans already made are not subject to the new requirement