# FHA to Conventional Refinance Calculator: Escape Lifetime MIP Canonical: https://themathsays.com/calculators/fha-to-conventional-refinance-calculator/ > Escape lifetime FHA MIP. Free calculator: break-even, lifetime MIP saved, and whether your equity supports a conventional refi. **The FHA MIP rules in one paragraph:** FHA loans originated after June 3, 2013 with less than 10% down at origination have *lifetime* mortgage insurance (MIP), no automatic cancellation. Loans with 10%+ down at origination have MIP that cancels after 11 years. For lifetime-MIP borrowers, refinancing to conventional is the only path out. This calculator tells you when it's worth it. Current FHA loan balance ($) Current home value ($) Check Zillow / Redfin estimates. Lender will require a paid appraisal (~$500) to confirm. Current FHA interest rate (%) Current monthly MIP ($) Look at your mortgage statement. Typically 0.55% of loan balance ÷ 12 for modern FHA loans. Years remaining on FHA loan Quoted conventional refi rate (%) Closing costs ($) New loan term (years) ## How this works Two things make FHA-to-conventional usually win: - **MIP elimination.** The $135/month you're paying for FHA mortgage insurance disappears the day you close on the conventional refi (assuming 20% equity to avoid conventional PMI). That's $1,620/year you keep, forever. - **Rate improvement.** If your credit has improved since FHA origination, conventional rates available now may be lower than your FHA rate. Or higher. The math runs both directions. Break-even = closing costs ÷ (current monthly outlay including MIP − new monthly P&I). **Equity check:** if you don't have 20% home equity at the current appraised value, the conventional refi will have its own PMI, defeating the purpose. The calculator flags this. The fix: wait for appreciation, pay down principal, or skip the refi. ## The verdict logic - **✅ Refinance:** 20%+ equity, break-even under 36 months, you're staying 5+ years. - **⚠️ Wait:** equity is close to 20% but not there, OR break-even is 3-5 years. - **❌ Don't yet:** under 20% equity (would add conventional PMI), OR planning to sell within 24 months. Compare conventional refi rates Get 5+ refi quotes Credible rate comparison ## FAQ Do I have 20% equity to qualify for conventional? You'll need 20% home equity to qualify for conventional without PMI. Equity = (current home value − current loan balance) ÷ current home value. If you put 3.5% down on FHA and home values have appreciated, you may already qualify even after only a few years. Why does FHA MIP last forever? For FHA loans originated after June 3, 2013 with less than 10% down at origination, MIP lasts the life of the loan. With 10%+ down at origination, MIP drops off after 11 years. Conventional PMI by contrast cancels at 80% LTV. That structural difference is why FHA-to-conventional refi is so common. What's the typical MIP cost on an FHA loan? Annual MIP runs ~0.55% of the loan balance for most modern FHA loans (rate reductions announced in 2023). On a $300k FHA loan, that's about $137/month forever. Plus the 1.75% upfront MIP you already paid at origination, non-refundable. What credit score do I need for conventional? Most conventional refis require 620+ for approval, 740+ for the best rates. If your score has improved since FHA origination, the conventional rate offered may be meaningfully better. Can I do an FHA Streamline instead? FHA Streamline keeps you in FHA, including the lifetime MIP. It lowers your rate but doesn't escape MIP. Streamline is for borrowers who can't qualify for conventional yet. Are there any cases where refinancing isn't worth it? Yes, if you're under 20% equity, your credit hasn't improved, and conventional rates aren't meaningfully better. Or if you're planning to sell within 24 months. The MIP savings need time to outpace the closing costs.