In some cases, you may be able to have MIP removed. However, many FHA borrowers will pay MIP for the life of their loans.
● If you made a down payment of 10% or more, you may be able to have MIP removed after 11 years of making payments.
● If you received your loan prior to June 3, 2013, you may qualify for cancellation if you’ve reached 22% equity in your home.
If you have at least 20% equity in your home but aren’t eligible to have MIP removed, your best option may be to refinance into a conventional loan – as long as that makes sense for your current financial situation. When you refinance into a conventional loan and keep at least 20% equity in your home, you won’t be required to purchase mortgage insurance.