I have lived in my home for 5 years and am in the process of selling it. Your best bet is to ask your lender directly, as there are many different mortgage insurance plans and combinations. I think banks are being very greedy in demanding a secured loan plus PMI and still wanting a perfect credit rating for 7 years. My husband and I are trying to buy a home. We have a good credit rating, but not perfect credit for 7 whole years.
Loans usually end up in mortgage backed securities.
The investment funds for IRAs, 401Ks, etc., have risk and return requirements which ultimately dictate the loan characteristics. If all the mortgage insurance was financed at the time of origination and is canceled prior to it's maturity you may be entitled to a refund if the refundable option was chosen at time of origination. It is best to refer back your lender for specific information on FHA loans. PMI Mortgage Insurance Co. does not insure FHA loans and therefore can not respond regarding FHA policies. Your lender collects moneys on escrow and remits to PMI when the premium is due.