FHA PMI/MIP Removal Calculator
FHA Mortgage Insurance Premium (MIP) follows completely different rules than conventional PMI. Use this calculator to find out if your MIP is permanent or if it will drop off after 11 years.
Last updated: May 2026
Crucial: Rules changed drastically on June 3, 2013.
Did you put down 3.5% or 10%+?
FHA MIP Status
Why?
Because you put down 3.5% (<10%) after June 2013, your FHA MIP is permanent. It will never drop off automatically, regardless of how much equity you have.
Action Required
You MUST refinance into a Conventional Loan to get rid of PMI.
Reviewed by CA Rohit Sharma
•Chartered Accountant & Tax ExpertExpert in Indian taxation, corporate finance, and mortgage compliance. Rohit ensures that all tax-related calculations and loan eligibility criteria align with current regulatory standards. All mathematical models and regulatory data points have been verified for the current 2026 fiscal period.
Conventional PMI vs FHA MIP
On a conventional loan, Private Mortgage Insurance (PMI) automatically drops off when your loan balance hits 78% of the original home value. You can also request removal early if your home appreciates in value.
FHA loans are entirely different. The FHA charges a Mortgage Insurance Premium (MIP). In 2013, the FHA drastically changed the rules to protect their insurance fund. Today, for most FHA borrowers, MIP is permanent and stays for the life of the loan, regardless of how much equity you build.
How to use this calculator
- 1Check Origination Date — Did you get your FHA loan before or after June 3, 2013? This is the most critical factor.
- 2Check Down Payment — Did you put down the minimum 3.5%, or did you put down 10% or more?
- 3Get The Verdict — The calculator applies the strict HUD rules to tell you exactly if and when your MIP will automatically cancel.
Formula & example
The Post-2013 FHA Rulebook
Example: You bought a house in 2021 with an FHA loan and a 3.5% down payment.
- Origination: Post-2013
- Down Payment: 3.5% (Less than 10%)
- Verdict: Life of Loan. Your MIP will never drop off automatically.
- Solution: You must refinance into a Conventional loan once you reach 20% equity.
Benefits
Avoid False Hope
Many borrowers overpay their FHA mortgage trying to hit 20% equity, not realizing their MIP is permanent.
Plan Your Refinance
Knowing your MIP is permanent triggers the strategy to monitor home values and refinance into a conventional loan.
Use cases
New Homeowners
Understanding the true long-term cost of choosing an FHA 3.5% down loan vs a Conventional 3% down loan.
Equity Rich Borrowers
Borrowers whose home values have doubled, wondering why they are still paying $200/month in FHA mortgage insurance.
Frequently asked questions
Can an appraisal remove FHA MIP?+
No. For loans originated after June 2013 with less than 10% down, getting a new appraisal showing 20% or 30% equity will NOT remove the FHA MIP. The FHA does not care about current home value.
How do I get rid of 'Life of Loan' MIP?+
The only way to remove permanent FHA MIP is to refinance your mortgage into a Conventional loan. You can do this once you have 20% equity in the home. However, you must compare the current interest rates before refinancing.
Did I pay an upfront premium too?+
Yes, all FHA loans require a 1.75% Upfront Mortgage Insurance Premium (UFMIP) paid at closing, in addition to the monthly annual premium.