The short answer: FHA calls its insurance MIP. For case numbers assigned on or after June 3, 2013, annual MIP generally lasts 11 years at original LTV up to 90%, and the mortgage term above 90%, capped at 30 years. A conventional refinance can replace it, but costs matter.
This post is for you if:
- You have an FHA loan and want MIP gone.
- You are weighing conventional refinance versus FHA.
- You want to distinguish MIP from PMI.
Would it be useful to review your FHA case date and original LTV before deciding whether a refinance is worth exploring?
Book a reviewIs FHA mortgage insurance PMI or MIP?
For a Federal Housing Administration (FHA)-insured mortgage, the U.S. Department of Housing and Urban Development (HUD) calls the charge mortgage insurance premium (MIP), not private mortgage insurance (PMI). HUD says annual MIP is paid monthly; the Consumer Financial Protection Bureau (CFPB) says FHA uses different rules from conventional PMI.
See my FHA loan guide for more on the program.
When does FHA MIP automatically end?
Whether FHA MIP ends without refinancing depends on the case-number assignment date and original loan-to-value ratio (LTV). HUD's later rules use original LTV; earlier loans have a separate cancellation policy.
HUD's current Handbook covers its legacy automatic-cancellation rules for mortgages closed on or after January 1, 2001 and assigned before June 3, 2013. For terms longer than 15 years, annual MIP ends at 78% of the lesser original sales price or appraised value after at least five years of MIP payments. Shorter terms have different case-date and LTV tests.
Eligible borrowers may request earlier cancellation after prepayments reach the 78% threshold. The request cannot be sooner than five years, except for 15-year mortgages; the borrower must not have been more than 30 days delinquent during the prior 12 months. Ask the servicer which legacy test applies.
For FHA cases assigned on or after June 3, 2013, HUD says original LTV of 90% or less means MIP lasts until term end or 11 years, whichever comes first. Above 90% LTV, it lasts until term end or 30 years, whichever comes first. HUD excludes financed upfront MIP from original LTV.
Ask your servicer for the FHA case date, original LTV, and projected final MIP payment date. For other loans, request a case-specific calculation.
What are the current annual MIP rates?
HUD's Appendix 1.0 lists annual MIP as a percentage that varies by term, base loan amount and original LTV. The rate and duration for each band appear below.
The active Handbook 4000.1 Update 18, published August 12, 2026, lists a $726,200 threshold. Confirm your row and any exception with your lender.
HUD described its 2023 change as a 30-basis-point cut, effective for eligible mortgages endorsed on or after March 20, 2023. HUD said rates changed from 0.85% to 0.55% for most homebuyers; that historical example is not a universal current quote. HUD lists exceptions, including certain older FHA streamline or simple refinances.
Can a conventional refinance remove FHA MIP?
A conventional refinance can replace the FHA mortgage and end that loan's MIP, but you must qualify for a new loan. The lender reviews LTV, credit and other underwriting factors; the new loan may have PMI.
Fannie Mae's Eligibility Matrix varies refinance LTV and credit-score criteria by transaction and underwriting method. It is not a universal cutoff.
Request a written estimate of balance, insurance, costs and term. See my FHA refinance timing guide and conventional loan guide.
Want to compare your current MIP timeline with a conventional refinance estimate? We can look at both without assuming a refinance is the right move.
Compare optionsWhen can conventional PMI be canceled?
CFPB says eligible conventional borrowers may request PMI cancellation at 80% of original home value, subject to conditions; automatic termination is scheduled at 78%, if the borrower is current. These Homeowners Protection Act (HPA) rules differ from FHA MIP.
For a request, CFPB lists a written request, good payment history and current payments, no junior liens, and evidence that value has not fallen below its original value. It also says PMI ends the month after the loan's amortization midpoint when current.
Apply these rules only to eligible conventional PMI, not existing FHA MIP. See the CFPB cancellation guidance.
Which option should I compare for my loan?
Compare three choices: keep FHA to its scheduled end, ask about legacy cancellation, or refinance conventional. Include the insurance timeline, loan costs and possible new PMI.
| Path | When it may fit | Trade-off |
|---|---|---|
| Keep the FHA loan | The HUD schedule ends before you expect to sell or refinance. | MIP continues to its scheduled end or payoff; home value alone does not reset the schedule. |
| Ask about legacy cancellation | Your case dates and original loan details may fit an older policy. | Servicer checks original value, term and payment record; request its calculation in writing. |
| Refinance conventional | You qualify and the costs and terms fit your plans. | Include closing costs, credit and LTV requirements, and possible new PMI. |
Ask your servicer for the FHA case date, original LTV and final MIP date. Request a full new-loan estimate, then compare both on the same time horizon.
How do I check whether refinancing breaks even?
Removing MIP alone does not prove a refinance saves money. Compare total costs and changed loan terms with expected savings over the time you expect to keep the home and loan.
As a rough screen, divide refinance costs by monthly insurance savings. Then account for the rate, term, balance, new PMI and total interest; this shortcut omits other loan costs.
Compare written estimates and total costs.
Frequently asked questions
Can I remove FHA MIP without refinancing?
Sometimes. It depends on the case date, original LTV, term and legacy conditions; ask your servicer for a written schedule.
Does a higher home value end FHA MIP sooner?
Not necessarily. Ask whether the original LTV schedule or a separate refinance review applies.
Can extra principal payments end FHA MIP early?
Some older eligible loans may have a cancellation route; later FHA cases follow HUD duration rules. Ask about your case.
Will a conventional refinance remove all mortgage insurance?
It ends the old FHA MIP, but the new conventional loan may have PMI. You must qualify for the new loan.
How do I find my FHA MIP end date?
Ask the servicer for the FHA case date, original LTV and final MIP payment date. Request the calculation in writing.
Is refinancing automatically cheaper when MIP ends?
No. Compare costs, payment, term, possible PMI and time in the loan. Removing MIP alone does not establish overall savings.
Sources
Last verified October 29, 2026. Programs, limits and fees change, so confirm the current numbers before you rely on them.
- HUD Handbook 4000.1, Update 18 and Appendix 1.0
- HUD: FHA Housing Handbooks
- HUD Mortgagee Letter 2013-04
- HUD Mortgagee Letter 2023-05
- HUD: 2023 FHA annual MIP reduction
- Consumer Financial Protection Bureau: PMI cancellation
- Fannie Mae Eligibility Matrix, August 5, 2026
If you are ready to review whether a refinance fits, you can start your application here.
Start your applicationI am Fabion Medhanie, U.S. Army Retired and a loan officer in Las Vegas. This is education, not a rate quote or a loan approval. Your loan options depend on your full file.
Buying or refinancing in Nevada? See FHA loans in Las Vegas and Nevada and the guide to Nevada down payment assistance.
