Dropping FHA mortgage insurance: wait it out, or refinance out
The upfront premium refund
Crossroads answer
If you refinance one FHA loan into another within three years of closing, HUD credits part of the original upfront premium toward the new loan's upfront premium, on a declining schedule. Refinancing into a conventional loan does not produce this credit. Ask your lender to show the credit on the Loan Estimate.
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What to ask
Whether your loan qualifies for the credit and how it appears on the Loan Estimate.
MIP questions
Do I get my FHA upfront MIP back if I refinance to conventional?
No. The partial credit applies only when refinancing into another FHA loan within three years.