Calculate when you can remove mortgage insurance from your FHA loan.
Enter your FHA loan details below to determine when you can remove mortgage insurance.
The rules for removing FHA Mortgage Insurance Premium (MIP) depend on when your loan was originated and your down payment amount:
| Loan Origination Date | Down Payment | MIP Duration |
|---|---|---|
| After June 3, 2013 | Less than 10% | Life of loan |
| After June 3, 2013 | 10% or more | 11 years |
| Between April 18, 2011 and June 2, 2013 | Any amount | When LTV reaches 78% and after 5 years |
| Before April 18, 2011 | Any amount | When LTV reaches 78% |
If your FHA loan requires lifetime MIP, you have several options to eliminate it:
The most common strategy to eliminate FHA MIP is refinancing to a conventional loan once you have sufficient equity:
Tip: If you have less than 20% equity but more than 5%, you might still benefit from refinancing to a conventional loan with PMI, as conventional PMI is often less expensive than FHA MIP and can be removed once you reach 20% equity.
If you have an FHA loan originated before June 3, 2013, or made a down payment of 10% or more after that date:
If your home is in an appreciating market:
Strategic improvements can increase your home's value:
If other options aren't feasible:
When considering refinancing to eliminate MIP, it's important to compare the costs and benefits of different loan options:
| Factor | Keep Current FHA Loan | Refinance to Conventional (20%+ Equity) | Refinance to Conventional (5-19% Equity) |
|---|---|---|---|
| Mortgage Insurance | Annual MIP (0.15-0.75%) For life of loan or 11 years |
None | PMI (0.25-2.25%) Until 20% equity reached |
| Interest Rate | Your current rate | Typically lowest available rates | Slightly higher than 20% down rates |
| Credit Score Requirements | N/A (already approved) | 620+ (740+ for best rates) | 620+ (740+ for best rates) |
| Closing Costs | None | 2-5% of loan amount | 2-5% of loan amount |
| Appraisal Required | No | Yes | Yes |
| DTI Requirements | N/A (already approved) | Typically 36-43% | Typically 36-43% |
| Best For |
- Low equity - Credit challenges - Short-term ownership - Very low current rate |
- Long-term ownership - Good credit - Significant equity - Current high rates |
- Moderate equity - Good credit - High MIP costs - Appreciating market |
Important: Always calculate your break-even point when considering a refinance. Divide your total closing costs by your monthly savings to determine how many months it will take to recoup your costs.
Calculate potential savings from refinancing your existing mortgage to an FHA loan.
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