FHA MIP Refund Chart & Guide | 2026 Mortgage Insurance Premiums

Home buyers pay an upfront mortgage insurance premium when they close on an FHA loan. The FHA MIP refund chart shows how much of that fee they may recover. This upfront fee, known as UFMIP or MIP, equals 1.75 percent of the loan amount.

This fee is refundable when you refinance into another FHA loan, like the FHA Streamline Refinance or the FHA Cash-out Refinance, within three years of closing your FHA home loan.

Your refundable amount will get smaller each month. After three years, you will no longer be eligible for any refund amount.

FHA MIP Refund Chart 2026

Months after closing	MIP refund	Months after closing	MIP refund	Months after closing	MIP refund
1	80%	13	56%	25	32%
2	78%	14	54%	26	30%
3	76%	15	52%	27	28%
4	74%	16	50%	28	26%
5	72%	17	48%	29	24%
6	70%	18	46%	30	22%
7	68%	19	44%	31	20%
8	66%	20	42%	32	18%
9	64%	21	40%	33	16%
10	62%	22	38%	34	14%
11	60%	23	36%	35	12%
12	58%	24	34%	36	10%

Source: HUD Handbook 4000.1, II.A.8.d.iv Upfront Mortgage Insurance Premium Refunds

Why does the FHA refund upfront mortgage insurance?

The word “refund” can be misleading. The Federal Housing Administration won’t send you a check in the mail. Instead, it’ll let you “re-use” part of the upfront MIP you’ve already paid.
You can reuse the FHA insurance premium only if you’re refinancing into another FHA loan within three years.

The FHA allows these partial refunds because MIP has a purpose. This fee helps lenders offer lower interest rates to borrowers who have riskier applications. It’s the main reason FHA loans can be a really good deal for home buyers with lower credit scores.

But the benefits of upfront MIP build slowly; your savings accrue gradually, with each monthly mortgage payment you make.

If you don’t keep your loan long enough to benefit very much from its lower interest rate, the FHA will refund part of the fee so you can re-use the money on your next FHA loan.

How to use the FHA MIP refund chart

To calculate your MIP amount for your new FHA refinance loan, you’ll need to know the following figures:

1. Your original MIP amount paid. You can find this listed on your original loan documents. Your loan officer can help you determine this.
2. The number of months since your loan’s closing date.
3. Your refund percentage (see chart above).

Use the FHA MIP refund chart above to find your eligible percentage. Then multiply your original upfront MIP amount by that percentage to determine your total refund amount.

For example, if your original MIP amount was $2,500 on a loan that closed 10 months ago, then your eligible refund percentage is 62%. Your MIP refund amount is $1,550 ($2,500 x 0.62).

Your lender will apply this refund amount to the upfront MIP due on your FHA refinance loan.

How to calculate your new FHA loan MIP amount

To calculate your MIP amount for your new FHA refinance loan, you’ll need to determine the following figures:

1. Your new loan’s upfront mortgage insurance premium (UFMIP) amount. Calculate this by multiplying your base loan amount by 0.0175 (almost all FHA mortgages charge 1.75 percent for UFMIP)
2. Your MIP refund amount (see above section for how to calculate)

Next, subtract your MIP refund amount from your new mortgage loan’s UFMIP amount. This amount is the total UFMIP you owe on your new refinance loan.

For example, if your new refinance loan is $200,000, then your new UFMIP amount is $3,500 ($200,000 x 0.0175). Let’s say your MIP refund amount is $1,800.

That means you’ll only have to pay $1,700 UFMIP towards your new refinance loan ($3,500 − $1,800 = $1,700).

Eligibility requirements for FHA MIP refunds

FHA has one rule for the MIP refund itself: you must refinance your current FHA loan into a new FHA loan within three years of its closing. The new loan must also meet FHA’s refinance rules. For example, streamline and cash-out refinances require a recent history of on-time payments.

Other things to note:

• You must refinance into another FHA loan to receive an MIP refund
• Your lender will apply MIP refunds to the UFMIP on the new FHA refinance loan
• For FHA Streamline Refinances, MIP refunds are available after the waiting period required for these loans: at least 210 days since closing and at least six payments made
• Your refinance loan closing must happen by the end of the 36th month after the current FHA loan was opened

See if you're eligible for a FHA refinance loan (Oct 28th, 2026)

Can I get the FHA MIP refund in cash?

FHA MIP refunds are not eligible as cash refunds. Instead, your lender credits them directly toward the UFMIP on your new FHA loan.

The HUD underwriting guidelines state: “If the Borrower is refinancing their current FHA-insured Mortgage to another FHA-insured Mortgage within 3 years, a refund credit is applied to reduce the amount of the Upfront Mortgage Insurance Premium (UFMIP) paid on the refinanced Mortgage.”

Who do I contact with questions regarding my MIP refund?

The U.S. Department of Housing and Urban Development (HUD) is the administrator of FHA loans. HUD has created a Mortgage Insurance Premium Refund Support Service Center where you can ask questions about mortgage insurance refunds. You can contact HUD with your questions in one of the following ways:

• Call 1-800-697-6967
• Email sf.premiums@hud.gov
• Search their database

To search this database, you will need your FHA case number. It should be part of your original loan documentation. This database covers cash refunds on older FHA loans that were paid off early, mostly loans endorsed before December 8, 2004. For the refund credit on an FHA-to-FHA refinance, your lender applies it to your new loan.

Upfront mortgage insurance premiums vs. annual insurance premiums

In addition to the upfront mortgage insurance premiums of 1.75 percent, all FHA loans charge an annual FHA mortgage insurance premium. Each premium charges a different percentage on the base loan amount and has specific requirements.

These annual premium amounts vary based on your loan term, down payment, and loan size. For FHA loans made since March 20, 2023, with a base loan amount of $726,200 or less, the annual rates are:

• 30-year loan with less than 5 percent down: Annual fee of 0.55 percent for the entire loan term
• 30-year loan with 5 to less than 10 percent down: Annual fee of 0.50 percent for the entire loan term
• 30-year loan with 10 percent or more down: Annual fee of 0.50 percent for 11 years
• 15-year loan with less than 10 percent down: Annual fee of 0.40 percent for the entire loan term
• 15-year loan with 10 percent or more down: Annual fee of 0.15 percent for 11 years

In addition, loans with a base amount above $726,200 pay higher annual rates.

The FHA divides these annual fees into 12 monthly installments. As a result, each monthly mortgage payment will include an MIP installment.

A loan of $200,000 with an annual fee of 0.55 percent requires about $1,100 in annual insurance fees the first year. To cover this cost, the FHA will add about $92 to each monthly payment.

Keep in mind that the FHA calculates all insurance premiums based on your loan amount. Because of your down payment, that amount should be smaller than your home’s purchase price. In addition, while your MIP rate stays the same, the actual amount you owe each year will go down as you pay off your loan balance over time.

FHA MIP refund FAQs

What does the FHA MIP refund chart show?

The partial refund of your upfront mortgage insurance premium grows smaller by 2 percentage points each month. After 36 months, you’re no longer eligible for an MIP refund. See the FHA MIP refund chart above for refund amounts by month.

Can you get money back on an FHA loan?

The Federal Housing Administration insures a cash-out refinance loan. Like all cash-out refis, this loan works by borrowing against the home equity you’ve built up. If you have enough equity to meet the FHA’s and your lender’s rules, you can get cash back at closing.

Is an FHA upfront mortgage insurance premium refundable?

You can reuse part of your FHA loan’s upfront mortgage insurance premium if you refinance into another FHA loan within three years. The amount of your FHA MIP refund grows smaller each month.

How is FHA MIP calculated?

The FHA’s MIP adds 1.75 percent of the loan amount to your loan upfront. You can pay this fee as part of your loan’s closing costs or roll it into the loan amount. The FHA also charges an annual mortgage insurance premium. For borrowers with 30-year terms who made the minimum down payment of 3.5%, the annual MIP will tack on 0.55 percent of the loan amount each year.

How do I get my FHA MIP refund?

Most FHA-authorized mortgage lenders will automatically apply your FHA MIP refund to your new MIP amount due. If you’re refinancing your FHA loan into another FHA loan, ask your loan officer to make sure the lender applies your refund to your new upfront MIP.

Can FHA MIP be removed?

Your FHA loan’s annual MIP will remain for the life of the loan unless you put at least 10 percent down. In that case, the premium goes away after 11 years. Alternatively, you can refinance into a conventional loan to eliminate MIP. Conventional loans will not require private mortgage insurance (PMI) if you have at least 20 percent in home equity. Lenders set their own credit score minimums for a conventional refinance, and many still look for a score of 620 or higher.

Apply for an FHA refinance before your refund expires

Current interest rates have slowed the demand for refinance loans.

Meanwhile, home values have continued to rise in many markets, creating more equity for more homeowners.

If you’re thinking about getting an FHA refinance, you may be able to save money through an FHA MIP refund.

See if you're eligible for a FHA refinance loan (Oct 28th, 2026)