FHA MIP Cancellation Calculator
Calculate savings from refinancing FHA loan to conventional once 20% equity reached. FHA MIP cannot cancel for sub-10% down loans.
| LTV | — |
| Eligible for Refi? | — |
| FHA Payment (P&I + MIP) | — |
| Conv Payment (P&I, no PMI at 80% LTV) | — |
| Monthly Saving | — |
| Closing Costs (~2.5%) | — |
Calculate savings from refinancing FHA loan to conventional once 20% equity reached. FHA MIP cannot cancel for sub-10% down loans. Sources cited below for methodology and benchmarks.
How to Calculate
FHA MIP for loans originated after June 2013 with under 10% down is permanent — it does NOT cancel automatically at any LTV. The only way to remove it is to refinance into a conventional loan. Once you reach 80% LTV (typically via principal paydown + appreciation over 3-7 years), refinancing to conventional with no PMI saves the entire MIP payment.
Benchmarks and Context
FHA MIP rates: 0.55% annual on loan balance (2026 standard rate), divided by 12. $265k balance = $121/mo MIP. Conventional PMI: 0.30-1.50% annual based on credit + LTV. At 80% LTV with 760+ FICO, PMI is $0 — full savings of $121/mo. At 85% LTV with 700 FICO, PMI might be $90/mo — saves only $31/mo vs FHA.
Common Mistakes
Common mistakes: (1) Assuming FHA MIP cancels at 20% equity — it does NOT for sub-10% down loans. (2) Not refinancing when conv rate is higher than FHA rate — sometimes worth small rate increase to drop MIP entirely. (3) Forgetting closing costs in break-even (typically 2-3% of loan). (4) Trying to refi when LTV is too high to qualify for low PMI conventional — wait or pay down principal first.
Last updated May 2026. Sources: HUD 4000.1 Handbook, CFPB FHA Loans.