FHA loans are popular because they allow lower down payments and flexible credit requirements.
But every FHA borrower must pay mortgage insurance premium (MIP) — and many homeowners don’t fully understand how it works until years later.
If you’re asking:
- How long does FHA mortgage insurance last?
- Can FHA MIP be removed?
- Is refinancing the only way to eliminate it?
This guide explains everything clearly — without the confusion.
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FHA mortgage insurance is a required cost on all FHA loans.
It protects lenders — not borrowers — in case of default.
There are two types of FHA mortgage insurance:
1. Upfront Mortgage Insurance Premium (UFMIP)
- Paid at closing
- Often rolled into the loan balance
- Typically calculated as a percentage of the base loan amount
Because it’s usually financed, many homeowners don’t feel it immediately — but it increases total loan cost over time.
2. Annual Mortgage Insurance Premium (Annual MIP)
- Paid monthly
- Included in your mortgage payment
- Based on loan balance, term, and LTV
This is the ongoing cost that most homeowners eventually want to remove.
How Long Does FHA Mortgage Insurance Last?
This depends on your original down payment.
If You Put Down Less Than 10%
- Annual MIP typically lasts for the life of the loan
- It does not automatically cancel
- Refinancing is usually required to remove it
This applies to the majority of FHA borrowers.
If You Put Down 10% or More
- MIP typically lasts 11 years
- After 11 years, it may automatically terminate
Many homeowners are surprised to learn that paying down the balance alone does not automatically remove FHA MIP if the original down payment was under 10%.
That’s one of the biggest misconceptions about FHA loans.
FHA MIP vs Conventional PMI
FHA mortgage insurance behaves differently than conventional private mortgage insurance (PMI).
Feature | FHA MIP | Conventional PMI |
| Required on All Loans | Yes | Only under 20% down |
| Removal at 80% LTV | No (if <10% down) | Yes (typically) |
| Credit-Based Pricing | No | Yes |
| Lifetime Requirement Possible | Yes | No |
Conventional PMI is often removable once equity reaches 20%.
FHA MIP, in many cases, is not.
If you're evaluating switching loan types, review our guide on how much equity you need to remove FHA MIP to understand the refinancing threshold.
Why FHA Mortgage Insurance Exists
FHA loans are government-backed programs designed to:
- Help first-time buyers
- Assist borrowers with moderate credit
- Expand access to homeownership
Because FHA allows lower down payments (often as low as 3.5%), mortgage insurance reduces risk for lenders.
The tradeoff is long-term insurance cost.
When Does It Make Sense to Remove FHA MIP?
Homeowners often explore removing MIP when:
- Home values have increased
- Equity approaches or exceeds 20%
- Credit score has improved
- Monthly insurance cost feels high relative to benefit
- They plan to stay in the home long-term
In many real-world refinance scenarios reviewed by our lending team, borrowers weren’t focused solely on lowering their rate — they were focused on eliminating lifetime insurance costs.
That distinction matters.
→ Learn more: Can You Refinance FHA With Less Than 20% Equity?
Is Refinancing the Only Way to Remove FHA MIP?
If your original down payment was less than 10%, refinancing into a conventional loan is typically the only way to eliminate MIP before the loan is paid off.
That’s why many FHA borrowers eventually consider switching loan types.
For a full strategy comparison, see our guide on refinancing from FHA to conventional loan.
Common Misunderstandings About FHA MIP
x “It drops off automatically at 20% equity.”
Not for most FHA loans originated with less than 10% down.
x “If my home value rises, MIP cancels.”
Home appreciation alone does not cancel FHA MIP.
x “Refinancing always saves money.”
Not necessarily. Break-even analysis is important. Closing costs and rate structure must be considered.
If you’re unsure how to evaluate timing, see our guide on how to calculate your refinance break-even point.
How to Check If You’re Paying FHA MIP
You can confirm by:
- Reviewing your mortgage statement
- Checking your original Closing Disclosure
- Looking at your loan type (FHA vs Conventional)
If your loan is FHA, you are paying MIP.
Why Homeowners Review FHA Insurance Options with Loan Factory
Understanding FHA mortgage insurance is step one.
Structuring the right refinance — if needed — is step two.
Why Homeowners Choose Loan Factory:
- Best Price Guarantee – If Loan Factory can’t beat a competitor’s official offer, you get $1,000 (Terms & Conditions apply)
- Zero application or junk fees
- Transparent side-by-side comparison of 244+ wholesale lenders
- Local loan advisors focused on total loan cost, not just interest rate
- AI-powered MOSO platform for real-time pricing comparisons
- Trusted guidance led by Thuan Nguyen, #1 Loan Officer in the U.S.
Sometimes removing MIP makes sense. Sometimes waiting results in stronger positioning.
We help you compare both paths clearly.
Want to See If You Can Remove FHA Mortgage Insurance?
Apply online: https://www.LoanFactory.com/apply
Compare refinance options: https://www.LoanFactory.com/quote
Set up a rate alert: www.loanfactory.com/mortgage-rate-alert
For faster support, call or text (660) 333-3333.
Based on real-world jumbo loan scenarios reviewed by Loan Factory’s lending team across multiple high-cost markets.
This content is for informational purposes only and not a commitment to lend. Loan options, rates, and terms depend on credit, income, property value, underwriting, and investor guidelines.
FAQ: FHA Mortgage Insurance Explained
