FHA mortgage insurance (MIP) is the trade-off for low down payments — but you don’t necessarily pay it for the life of your loan. Here’s how to get rid of it.
First, know which rule applies to you
It depends on your original down payment. If you put down less than 10%, MIP lasts the life of the loan. If you put down 10% or more, annual MIP automatically ends after 11 years. Check which bucket you’re in.
Option 1: Wait it out (10%+ down only)
If you put 10% or more down, you don’t have to do anything — MIP drops off after 11 years. For everyone else, waiting won’t remove it.
Option 2: Refinance to a conventional loan
This is the most common path. Once you have roughly 20% equity in your Florida home — through paying down the loan, rising home values, or both — you can refinance into a conventional loan with no monthly mortgage insurance. Given how much Florida home values have risen, many homeowners reach 20% faster than they expect.
Is it worth it?
Run the numbers. Refinancing has closing costs, so the savings from dropping MIP (and possibly a better rate) need to outweigh them within a reasonable time. If you’ll stay in the home and the math works, removing MIP can save thousands. We’re happy to run a free break-even analysis.
Key takeaways
- Less than 10% down = MIP for the life of the loan.
- 10%+ down = MIP ends automatically after 11 years.
- Refinancing to conventional at ~20% equity removes MIP.
- Rising Florida home values can get you to 20% equity faster.