FHA loans · Guide

Removing FHA Mortgage Insurance

Ways homeowners can stop paying FHA MIP.

  • Reading time2 min
  • Official sources2 cited
  • Updated
  • Last reviewed

Quick answer

For FHA loans with case numbers assigned on or after June 3, 2013, annual MIP lasts 11 years if the original loan-to-value was 90 percent or less, and for the life of the loan otherwise (HUD Mortgagee Letter 2013-04, carried into Handbook 4000.1).

Key takeaways

  • Paying down principal does not cancel life-of-loan MIP on newer FHA loans. Paying down
  • Your servicer can tell you the MIP cancellation date, if any. Check your loan
  • Your closing documents or servicer can tell you the FHA case number assignment date, which controls the MIP rules for your loan. Find your case date

MIP duration

For FHA loans with case numbers assigned on or after June 3, 2013, annual MIP lasts 11 years if the original loan-to-value was 90 percent or less, and for the life of the loan otherwise (HUD Mortgagee Letter 2013-04, carried into Handbook 4000.1).

Refinance to conventional

With enough equity, refinancing to a conventional loan can eliminate mortgage insurance.

Paying down

Paying down principal does not cancel life-of-loan MIP on newer FHA loans.

Check your loan

Your servicer can tell you the MIP cancellation date, if any.

Find your case date

Your closing documents or servicer can tell you the FHA case number assignment date, which controls the MIP rules for your loan.

Original loan-to-value

Whether MIP lasts 11 years or the life of the loan depends on the original loan-to-value at closing, not the current value.

Conventional switch

With enough equity and good credit, refinancing to a conventional loan may remove mortgage insurance. Compare closing costs against the premiums you would save.

Ask your servicer

Request a written explanation of when MIP ends on your loan.

Paying down

Paying down the balance does not end life-of-loan MIP; only a refinance or payoff does.

General education only; confirm current rules with official sources and a licensed lender.

Sources

Sources reviewed .

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