Dropping FHA mortgage insurance: wait it out, or refinance out
Staying FHA
Crossroads answer
Staying FHA can make sense when your equity or credit would mean high PMI or pricing on a conventional loan, when your MIP ends on its own within a few years, or when an FHA-to-FHA streamline lowers the payment. An FHA streamline does not remove MIP, but HUD has reduced annual premiums for newer loans, so it can still lower the cost.
Last reviewed against the primary sources listed below.
Signals to stay
- MIP ends soon under the eleven-year rule.
- Limited equity.
- Credit that conventional lenders price heavily.
MIP questions
Does an FHA streamline remove MIP?
No. The new FHA loan carries its own mortgage insurance.