FHA MIP Refinance Advice

[Brian Nordman]

Hi everyone! I'm looking into doing a deal on a duplex in which I would live in and finance through an FHA loan. Obviously, I understand there is an upfront premium at closing as well as mortgage insurance premiums included in your mortgage payment when you put down less than 20%. My question is, I've heard that with FHA loans the MIP sticks with you throughout the entire life of the loan. I've also heard that once you reach 20% equity the MIP falls off. If it does indeed stick with you throughout the life of the loan, how difficult would it be to refinance once you've reached 20% equity to ensure you no longer have to pay the MIP?

Thanks!

[Jeff Dulla]

@Brian Nordman @Kevin Siedlecki - like many programs over the last ten years, there have been a ton of changes. With PMI, there was another change within the last year or so that, for all intents and purposes, makes you refinance out of the FHA loan to cancel. In other words it doesn't cancel.

This link does a decent job of laying it all out for you:

http://www.fhahandbook.com/blog/cancel-fha-mortgag...