MIP or Mortgage Insurance Premium is part of the FHA mortgage insurance program only. FHA self-insures their loans using these funds. FHA borrowers can choose to pay an upfront premium (usually financed) or an annual premium paid in monthly installments.
MIP cancellation rules may have changed recently. Please check the Single Family Upfront Mortgage Insurance Premium (MIP) page on the FHA website for the latest information. As of January, 2015:
- 30-year FHA mortgages predating June 3, 2013: In general, MIPs will automatically terminate for these loans if they meet two conditions. The loan must have reached 78% LTV and the MIP needs to have been paid for at least 60 months.
- 15-year FHA mortgages that predating June 3, 2013: MIP automatically drops from these loans once they reach 78% LTV. For loans with FHA case numbers assigned on or after June 3, 2013—and with greater than 90% LTV at origination—MIP will remain in effect. For any loans under 90% LTV at origination, MIP is required for 11 years.
- Mortgages with an FHA case number assignment date on or after June 3, 2013: FHA insurance can be terminated by the servicer or holder if the mortgage is paid in full before the maturity date.
To learn about different kinds of FHA loans, visit the FHA loans website.
Learn more about private mortgage insurance