The short answer
How you remove FHA mortgage insurance depends on when you got your loan and how much you put down. For most FHA loans made since June 2013, MIP ends after 11 years if you put down at least 10%. If you put down less than 10%, it lasts for the life of the loan, and the usual way out is to refinance into a conventional loan once you have at least 20% equity. Paying the loan down doesn't remove it by itself.
Why FHA mortgage insurance is so sticky
Conventional loans drop PMI on their own as your balance falls. FHA loans used to work similarly. Then, in June 2013, the rules changed.
For most FHA loans with case numbers assigned on or after June 3, 2013, MIP lasts:
| Down payment | How long MIP lasts |
|---|---|
| Less than 10% | Life of the loan |
| 10% or more | 11 years |
Since most FHA borrowers put down 3.5%, most are paying MIP for as long as they keep the loan. On a $386,000 FHA loan, that's about $179 a month to start, shrinking slowly as the balance falls, for 30 years. See PMI vs. FHA mortgage insurance for the full cost comparison.
Not sure which rules apply to your loan? A free payoff projection includes a look at your loan details.
Loans made before June 2013
Older FHA loans follow older rules. For loans from January 2001 through June 2, 2013, MIP generally ends once the balance reaches 78% of the original value and you've paid it for at least five years. If you have one of these loans and you're still paying MIP, call your servicer. You may be past the point where it should have come off.
Option 1: Wait out the 11 years
If you put down 10% or more, the simplest path is patience. MIP ends after 11 years. On a $400,000 home with 10% down, that's roughly $24,900 in total mortgage insurance, including the upfront charge.
Option 2: Refinance into a conventional loan
For everyone else, refinancing is the main exit. If your new conventional loan is 80% or less of your home's current value, it won't need PMI, and MIP goes away with your old loan.
You can get to 80% two ways: by paying the balance down, or because your home's value has gone up. On a $400,000 home with 3.5% down at 6.5%, regular payments alone take about 11 years and 7 months to bring the balance below $320,000, 80% of the purchase price. If your home has gained value, you could get there years sooner.
Before you refinance
A refinance comes with closing costs, often 2% to 5% of the loan. Run three numbers before you decide:
- Your monthly MIP. That's what you'll save.
- Your closing costs. Divide them by your monthly MIP to see how many months it takes to break even.
- The new interest rate. If it's much higher than your current FHA rate, the higher interest could wipe out the MIP savings.
If the new rate is similar or lower and you'll stay in the home past the break-even point, refinancing usually makes sense. Our guide on whether refinancing gets rid of PMI walks through the math in more detail.
Speed it up with extra payments
Extra principal payments bring your balance to 80% sooner, so you can refinance out of MIP earlier. They also cut interest. See the 20% equity milestone for everything else that opens up when you get there.
If high-interest debt is slowing you down, clear it first. The Zero Debt Method is built for households carrying several balances.
MIP isn't protection for your family
FHA mortgage insurance pays your lender, not you. If you want coverage that keeps your family in the home, that's mortgage protection.
Thinking beyond mortgage insurance
Dropping MIP saves you money every month. Paying off the loan itself saves far more. Ridgewell's Mortgage Accelerator Program is designed to change how your mortgage is structured, so qualifying households can pay off a home in as little as 5 to 7 years.
Payoff timelines are illustrations for qualifying households and are not guaranteed.
Where to start
Find your FHA case number date and your original down payment on your closing documents. That tells you whether your MIP ends after 11 years or lasts for the life of the loan. If it's for life, divide your balance by your home's estimated value. Once that number is under 80%, it's worth getting a refinance quote.
For all mortgage insurance options, see PMI explained. To see your own path, get a free payoff projection.
Examples assume a $400,000 home and a 30-year fixed FHA loan at 6.5%, figures rounded. FHA rules described apply to most loans with case numbers assigned on or after June 3, 2013. Your servicer has the final word on your loan.
