The Quick Read: Yes, sometimes. On a thirty-year FHA loan with at least 10% down, the annual premium ends after eleven years. With less than 10% down, it usually lasts the whole loan. Extra equity or a higher home value does not change that. Refinancing out of FHA does.
Which Rule Applies to Your Loan?
Two facts decide it: the down payment you made at closing, and when your FHA case number was assigned. Everything else is noise. Here is the lookup.
FHA payment estimate
Starting assumptions reflect an example price and the FHA minimum investment. Replace them with your own figures.
Editable benchmark: 7.32% as of October 22, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $350,000 price, the FHA minimum investment as the down payment, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; county loan limits are not checked here. Licensed in sixteen states for consumer mortgages. Lendmire is not affiliated with or acting on behalf of FHA, HUD, or the federal government.
| Your FHA loan | Does the annual premium end? | What you do |
|---|---|---|
| Case number June 3, 2013 or later, 10% or more down | Yes, after eleven years (30-year loan) | Ask the servicer for the end date |
| Case number June 3, 2013 or later, under 10% down | Usually lasts the loan term | Plan a refinance, sale, or payoff |
| Case number before June 3, 2013 | A monthly cancellation process may apply | Ask the servicer to review it |
| Any FHA loan, upfront premium | Does not “drop off” | Paid at closing, usually financed |
Two notes on the table. The eleven-year figure applies to a thirty-year term. Shorter terms sit on different tiers, so check yours. And the whole table is subject to your loan documents and your servicer’s review.
This is the part most buyers miss at the closing table. The choice that controls how long you pay is the down payment. You make it once, on day one.
Why Equity and Home Value Don’t Help
You cannot appraise your way out of FHA mortgage insurance. FHA servicing rules do not consider new appraised values when deciding whether a loan has reached the required loan-to-value ratio (HUD servicing update, Mortgagee Letter 2025-06). The test uses the original numbers.
Loan-to-value (LTV) is the loan balance divided by the home’s value. On an FHA purchase, the program allows up to 96.5% financing with a 3.5% minimum investment from a borrower at a 580 decision score or higher. That is the starting point for most first-time buyers.
Run the math on that buyer. Start at 96.5% LTV. You could pay down the balance and watch the home appreciate for a decade. On the premium schedule, you still started above 90%. So the annual premium generally stays for the term.
It’s a fixed-at-closing rule. Not a moving target.
It’s MIP, Not PMI (and That Matters)
FHA calls its insurance MIP, short for mortgage insurance premium. Conventional loans use PMI, private mortgage insurance. People use the terms interchangeably, and that creates a real misunderstanding.
Conventional PMI has legal cancellation rights. A federal law gives borrowers a path to remove it as equity builds. The CFPB’s examination manual for that law states that it does not apply to mortgage insurance made available under the National Housing Act, which is the FHA program (CFPB Homeowners Protection Act procedures).
So the “cancels at 80% or 78%” advice you read online is about conventional loans. It does not carry over to FHA.
What a 10% Down Payment Changes
The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Ten percent down is the decision point. At or below 90% LTV, on a thirty-year loan, the annual premium ends after eleven years. Above 90%, it lasts for the term. In the FHA files Lendmire arranges, this is the single choice that shifts the long-term cost most. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Picture two buyers with the same home price and the same loan term. One puts 3.5% down. The other puts 10% down. Both owe the upfront premium, which is 1.75% of the base loan and is usually financed into the balance. Both pay an annual premium, which the program sets between 0.15% and 0.75% of the balance depending on term, loan amount, and LTV.
The buyer with 3.5% down keeps paying for the life of the loan. The buyer with 10% down stops after eleven years. Same house. Different outcome. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
That does not mean everyone should stretch for 10%. Draining your cash cushion to hit a threshold can backfire. Many buyers choose 3.5% down on purpose and plan to refinance later. Either choice can be sound. It depends on your reserves, your timeline, and how long you expect to keep the loan.
Larger down payments also never eliminate the premium outright. FHA requires mortgage insurance at any down payment. More down changes the annual amount and the duration, not whether it exists.
What About the Premium Cut?
HUD lowered the annual premium for new FHA loans in Mortgagee Letter 2023-05. The same letter confirms the upfront premium at 1.75% of the base loan.
A cut makes the premium smaller. It does not make it shorter. Duration still follows the original LTV and the case-number date. If someone tells you the cut “removed” mortgage insurance, they have the wrong end of it.
Older Loans Have Their Own Rule
If your FHA case number was assigned before June 3, 2013, a different path may apply. HUD describes a monthly premium cancellation function for loans closed after the end of 2000 with a case number assigned before that June date (HUD monthly MIP program information). It follows an older HUD letter and depends on your closing date.
Whether your loan meets the test is a servicer question. Don’t guess from forum posts. Online sources quote specific equity and payment-history triggers for this group, and those vary. Ask your servicer to confirm your status against HUD’s rules in writing.
Your Real Ways Out
If your premium is not ending soon, you have three exits. Each has trade-offs.
Refinance into a non-FHA loan. This ends FHA mortgage insurance. Your new loan then follows the new lender’s rules. Whether you owe conventional mortgage insurance depends on your equity, your credit, and the lender’s guidelines. With a strong equity position, you may avoid it. With thin equity, you may swap one insurance cost for another.
Refinance within FHA. The FHA Streamline refinances an existing FHA loan with no appraisal and a limited credit review, but it needs a net tangible benefit, and the premium continues. So a Streamline will not remove mortgage insurance. It can help with other goals. Can an FHA Streamline Skip the Appraisal and Drop Mortgage Insurance? covers where that line falls.
Sell or pay off. When the loan ends, the premiums end. Some borrowers keep the FHA loan because they plan to move within a few years. In that case, the premium never outlasts the loan.
A refinance is not free. You give up your current loan terms and take on new closing costs, and the new loan resets the clock on the balance. The honest test is a break-even check: compare the cost to refinance against what you’d save over the time you realistically plan to stay.
Cancelling the Premium Is Not Ending the FHA Insurance
These two things sound alike. They are not.
When HUD cancels your annual premium, you stop paying it, but the FHA insurance on your loan stays in force. The insurance contract continues for the full term unless it is otherwise terminated (HUD servicing update).
A voluntary termination is a different act. Under HUD’s rules, the borrower and servicer can ask FHA to end the insurance contract. The cost is that the loan is no longer governed by FHA insurance program rules, including loss mitigation, which is the set of help options for borrowers who fall behind. HUD’s own consent form also warns that any outstanding partial claim becomes due on termination (HUD Borrower’s Consent to Voluntary Termination).
If you only want the premium to stop, do not sign a termination form. Ask the servicer which one a document is. (A servicer should explain this. Don’t assume it will.)
How to Check Your Own Status
You can find your answer without a lender. Gather the items listed below:
1. Your closing disclosure or settlement statement, which shows your loan amount and home price.
2. Your original appraisal or purchase contract, so you can work out your starting LTV.
3. Your FHA case-number date, which sits on your loan documents.
Then call your servicer and ask four questions:
- What is my original LTV on file?
- What is my case-number assignment date?
- Is a final premium date scheduled, and what is it?
- If the premium ends, what will my new payment breakdown look like?
If the premium keeps appearing past the date it should have ended, ask for a written explanation and escalate it inside the servicer. Keep your documents handy.
What If You Can’t Refinance Yet?
Most borrowers who are stuck are stuck for one of three reasons: thin equity, credit that needs work, or income that doesn’t fit the new loan. None of these is permanent.
- Thin equity: Principal payments and time raise it. Re-check in a year.
- Credit: Paying down revolving balances and avoiding new accounts can move a score. Waiting periods after a bankruptcy or foreclosure are HUD rules, such as two years from a chapter 7 discharge and three years from a foreclosure.
- Income and debt: A lender’s debt-to-income limits decide this. Paying off a small loan can change the picture.
Don’t plan around proposed legislation, either. Bills that would change FHA cancellation have been floated, and none of them changes your loan today.
Key Terms Defined
MIP (mortgage insurance premium): The insurance cost FHA charges, paid by the borrower, that protects the lender if the loan defaults.
Upfront premium: A one-time charge of 1.75% of the base loan, usually financed into the balance.
Annual premium: The ongoing charge, collected monthly, set by loan term, loan amount, and LTV.
LTV (loan-to-value): The loan balance divided by the home’s value, shown as a percentage.
Case number: The ID HUD assigns to your FHA loan; its assignment date decides which cancellation rule applies.
Loss mitigation: The set of options servicers offer borrowers who fall behind, such as repayment plans or modifications.
Frequently Asked Questions
Does FHA mortgage insurance go away at 20% equity?
No. The 20% and 80% figures belong to conventional PMI. FHA follows its own schedule, set by your original LTV and case-number date. Equity you build after closing does not shorten it.
Can I stop the premium by making extra principal payments?
Not on a newer loan. Extra payments reduce your balance and your interest, which is a good use of cash. They do not move your original LTV, so they do not shorten the premium period. If your payments are meant to reach a cutoff, confirm the rule with your servicer first.
Is the upfront premium refundable?
Generally no, because it was paid at closing and typically rolled into your loan. In some payoff situations, a partial refund of the unused premium can apply. Ask your servicer when you pay off or refinance.
Does a bigger down payment remove the mortgage insurance?
No. Putting 10% or more down means that, on a thirty-year loan, the annual premium ends after eleven years instead of lasting the term.
Will refinancing to a conventional loan end mortgage insurance for good?
It ends FHA mortgage insurance. Whether you owe conventional mortgage insurance depends on the new loan’s LTV, your credit, and the lender’s guidelines. Everything remains subject to lender guidelines and full file review.
Next Step
If you are buying a home and want to see whether an FHA loan fits your file, Lendmire can help you compare the options and what each one asks of the file. You can also review Lendmire’s FHA loan programs to see how the program fits a purchase. Lendmire is a mortgage broker, so it arranges loans through wholesale lenders. Nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. HUD servicing update, Mortgagee Letter 2025-06
2. HUD monthly MIP general program information
3. CFPB Homeowners Protection Act examination procedures
4. HUD Mortgagee Letter 2023-05
5. HUD Borrower’s Consent to Voluntary Termination
This article is part of Lendmire’s FHA loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Limit Mortgage Insurance Premium on an FHA Loan · FHA Loan Mortgage Insurance Requirements for Avoiding Premium · How an FHA Cash-Out Refinance Counts Mortgage Insurance
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.