FHA annual MIP and conventional PMI both add to the payment. They do not leave the loan the same way. On most post-2013 FHA loans with less than 10% down, annual MIP lasts for the life of the loan unless you refinance out of FHA. Conventional borrower-paid PMI can often come off with equity under the Homeowners Protection Act. Snapshot as of 2026-08.
This page is about how mortgage insurance already on a loan ends. It is not the purchase question of whether to wait until you can put 20% down. The purchase question is should I wait for 20% down. Servicer cancellation of conventional PMI (original value vs a new appraisal) is PMI removal mechanics.
| Question | FHA MIP | Conventional PMI |
|---|---|---|
| What it is | Upfront MIP (1.75% of the base loan amount (often financed)) plus annual MIP. Annual MIP is a range that depends on term, loan amount, and LTV. It is not a single published percent for every file. | Private mortgage insurance when LTV is above the investor’s threshold (commonly when you put less than 20% down). Premium is not a single published percent. |
| How it usually ends | For FHA case numbers assigned on or after June 3, 2013, annual MIP generally lasts 11 years when original LTV is 90% or less (10% or more down), or for the remaining loan term (up to 30 years) when original LTV is above 90%. Later equity from payments or appreciation does not cancel annual MIP the way conventional PMI often can. | Borrower-paid conventional PMI can often be requested off at 80% of original value and is typically automatically terminated at 78% of original value under the Homeowners Protection Act, if the loan is current. Lender-paid PMI and some investor products differ. |
| Later equity / a new appraisal | Paying extra principal or a higher value does not cancel post-2013 annual MIP on the original schedule. Refinancing into conventional is the usual early exit. | Canceling conventional PMI with a new appraisal based on current value is a separate investor conversation from automatic HPA termination on original value. |
| Not this page | This page is about how mortgage insurance already on a loan ends. It is not the purchase question of whether to wait until you can put 20% down. | Waiting until you can put 20% down on a purchase is a different first-time question. Automatic vs appraisal-based PMI removal is a later conventional topic. |
Lender-paid PMI, split-premium PMI, and USDA / VA fees are different products. VA uses a funding fee, not monthly PMI.
FHA: original LTV sets the clock
For FHA case numbers assigned on or after June 3, 2013, annual MIP generally lasts 11 years when original LTV is 90% or less (10% or more down), or for the remaining loan term (up to 30 years) when original LTV is above 90%. Later equity from payments or appreciation does not cancel annual MIP the way conventional PMI often can.
Upfront MIP is often financed: 1.75% of the base loan amount (often financed). Financing it raises the base loan. That is a Loan Estimate line, not a reason MIP will vanish later. Program overview: FHA loans. If you later refinance FHA-to-FHA, that may be a streamline — it does not automatically delete annual MIP; the new FHA loan has its own MIP rules.
Conventional: original value vs a new appraisal
Conventional PMI can usually be removed once the loan reaches the investor’s equity threshold (commonly 20% based on original value, or by a new appraisal under the program rules).
Borrower-paid conventional PMI can often be requested off at 80% of original value and is typically automatically terminated at 78% of original value under the Homeowners Protection Act, if the loan is current. Lender-paid PMI and some investor products differ. Asking the servicer to cancel based on a new appraisal of current value is allowed on some files and is a different path from automatic termination. That appraisal path is PMI removal: original value vs new appraisal, not this page’s main subject.
Side-by-side program choice (credit, down payment, property): FHA vs conventional. Conventional overview: conventional loans.
What happens next
- Read the mortgage-insurance line on two Loan Estimates over a 5–7 year horizon, not the note rate alone.
- If you already have FHA MIP and want it gone before the 11-year / life-of-loan clock, ask about a conventional refinance and run break-even — MIP savings can be eaten by costs.
- Use the payment calculator as an illustration only; it cannot cancel MIP.
Common questions
Keep going
What to do next
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures