MIP cancels at 78% LTV \u2014 always?

Only pre-2013 loans. Post-2013: only if origination LTV under 90%.

Refi to remove \u2014 worth it?

Yes if break-even under 3 years AND you'll keep loan 5+ years.

Different \u2014 PMI cancels at 78% LTV (HPA). MIP rules separate.

Upfront MIP \u2014 refundable?

Partial \u2014 first 36 months only, sliding scale.

Does new appraisal help?

Yes \u2014 if home value rose, LTV drops, can request cancellation if eligible.

FHA MIP Removal 2027

FHA MIP: lasts life of loan for >90% LTV at origination (post-2013). To remove: refinance to conventional. Pre-2013 loans 78% LTV removal.

Current FHA Loan Balance ($)

Current Home Value ($)

Current Monthly MIP ($)

Origination Year

Current LTV

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Strategy

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Annual Savings

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Current balance	—
Home value	—
LTV	—
Equity	—
Refi cost (2.5%)	—
Annual MIP savings	—
Refi break-even	—
Recommended action	—

FHA Mortgage Insurance Premium (MIP) lasts the life of the loan for most loans originated after June 2013 (over 90% LTV). Unlike conventional PMI, you cannot cancel it by reaching 78% LTV — you must refinance to conventional to remove.

Pre-2013 vs Post-2013 Rules

Pre-2013 origination + over 90% LTV at start: MIP auto-cancels at 78% LTV. Post-June 2013 + over 90% LTV at start: MIP for LIFE of the loan. Under 90% LTV at start (5%+ down): MIP cancels at 11 years. Big difference in rules — check origination date.

Refinance to Remove MIP

Refinance to conventional loan once you have 20%+ equity. Avoid: cash-out refi adds to loan balance. Closing costs: $3K-$5K typical. Break-even: refi cost / annual MIP savings = years. Under 3 years = strong yes. Over 5 years = depends on long-term plan.

Strategies to Speed Removal

(1) Pay down extra principal until 80% LTV. (2) Get appraisal showing higher value (helpful if home appreciated). (3) Wait for market appreciation. (4) Refi when conventional rates are reasonable. Don't refi during high-rate periods just to escape MIP.

Last updated May 2026. Sources: HUD FHA MIP Rules.