Dropping FHA mortgage insurance: wait it out, or refinance out
PMI after leaving FHA
Crossroads answer
If you refinance from FHA to a conventional loan with less equity than the conventional threshold, you will usually pay private mortgage insurance instead. Unlike life-of-loan FHA MIP, conventional PMI can be canceled later under federal rules. Compare both insurance costs and timelines before deciding.
Last reviewed against the primary sources listed below.
Compare
| Stay FHA | Refinance to conventional | |
|---|---|---|
| Insurance | FHA MIP | PMI if equity is low |
| Can it end? | Depends on loan terms | Yes, under federal rules |
| Cost to switch | None | Closing costs |
MIP questions
Will I pay PMI if I refinance from FHA to conventional?
Usually yes if your equity is below the conventional threshold.
Can conventional PMI be removed later?
Yes, by request or automatically under federal rules.