FHA MIP refund chart: A guide to your refinance credit

By

Chibuzo Ezeokeke

Contributed by Tom McLean

Actualizado el 31 de ago del 2026

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If you use an FHA loan to buy a home, you must pay an up-front mortgage insurance premium (UFMIP), which protects lenders and helps fund the FHA mortgage program. However, if you refinance1 to a new FHA loan within 3 years, you can get a portion of the fee refunded as a credit that’s applied to the UFMIP on your new loan. The U.S. Department of Housing and Urban Development (HUD) publishes an FHA MIP refund chart that tells you how much of a refund you can get. Learn more about the FHA MIP refund chart and how the process works.

Key takeaways:

  • If you refinance an FHA loan into another FHA loan within 36 months, you may be eligible to recover a portion of your original up-front mortgage insurance premium (UFMIP) as a credit.
  • An FHA MIP refund is never paid out as cash; instead, it directly reduces the up-front mortgage insurance required on your replacement FHA loan.
  • Your refund percentage drops steadily each month, starting at 80% in month 1 and scaling down to 10% in month 36.

What is an FHA MIP refund?

A MIP refund is a credit provided by the Federal Housing Administration (FHA) when you refinance an existing FHA loan into a new one within 3 years of your original closing date.

What is UFMIP?

UFMIP is a one-time fee the buyer pays at closing. It’s an FHA loan requirement. For most purchase and refinance mortgages, the UFMIP is 1.75% of your loan amount. You can pay this amount out of pocket or roll it into your loan balance.

Up-front MIP vs. annual MIP

There are two types of MIP:

  • Up-front MIP. A one-time fee equal to 1.75% of your total loan amount.
  • Annual MIP. An annual MIP is typically equal to 0.55% of your balance. It’s recalculated each year based on your current mortgage principal, so it will decrease each year you pay it. The annual fee is divided into monthly installments and added to your mortgage bill. You pay annual MIP for 11 years if your FHA loan down payment was 10% or more of the purchase price. If you made a smaller down payment, you pay the annual MIP for the entire loan term.

Only your initial UFMIP is eligible for a partial refund credit when refinancing. Your annual MIP payments are nonrefundable.

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How an FHA MIP refund works

When you refinance, HUD calculates your refund based on how many months have passed since your original closing date.

Why the refund is a credit, not cash

Don’t expect to receive your refund as a check or bank deposit after closing. HUD requires your lender to apply the refund as a credit toward the UFMIP fee on your new FHA mortgage. This reduces your out-of-pocket costs at closing or reduces the total debt rolled into your new loan.

What happens if you refinance into a conventional loan

If you switch from an FHA loan to a conventional loan or any non-FHA mortgage, you give up any refund of your UFMIP. The FHA MIP refund credit is only valid on FHA-to-FHA transactions.

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FHA MIP refund chart 2022

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%

How to calculate your FHA MIP refund

How much of a UFMIP refund might you get? Try this formula:

Original UFMIP x refund percentage = refund

Imagine you took out an FHA loan for $200,000. Your original up-front MIP will be 1.75% of that amount, or $3,500:

$200,000 x 0.0175 = $3,500

If you close on a refinance loan 25 months after closing on your original FHA loan, you’ll qualify for a refund of 32% of your MIP up-front payment.

By multiplying your $3,500 of up-front MIP payment by 32%, you get $1,120:

$3,500 x 0.32 = $1,120

If your new FHA loan was for $350,000, the full up-front MIP would be $6,125.

$350,000 x 0.0175 = $6,125

After applying the credit, your final up-front MIP would be $5,005.

$6,125 − $1,120 = $5,005

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What is an FHA Streamline refinance?

An FHA Streamline refinance allows homeowners to do a rate-and-term refinance of their FHA loan with reduced paperwork and no FHA appraisal.2 Streamline refinances significantly cut down on how long the process takes.

How the MIP refund applies to an FHA Streamline refinance

Because Streamline refinances move quickly and stay within the FHA ecosystem, your lender will automatically factor in your credit percentage to make refinancing as cost-effective as possible.

When an FHA refinance may make sense

A refinance makes the most sense if it reduces your monthly payment, reduces your FHA loan rate, or shortens your loan term. If you're already satisfied with your current terms and FHA refinance rates haven't moved in your favor, chasing a refund credit may cost you more than you'd save.

Eligibility requirements for FHA MIP refunds

To receive an up-front MIP credit, you must meet key criteria established by HUD:

  • Time limit: Your initial FHA mortgage must have closed within the past 36 months
  • Loan type: You must refinance into another FHA loan rather than a conventional loan, VA loan, or USDA loan.3 Rocket Mortgage currently doesn’t offer USDA loans.
  • Payment standing: You must be current on all monthly mortgage payments with no active defaults.
  • Credit record: You can’t have foreclosures on your credit history

The bottom line on FHA MIP refunds

The FHA MIP refund chart helps homeowners understand how much they can save on FHA home loan closing costs when refinancing from one FHA loan into another within 36 months. While your refund is issued as an up-front credit instead of cash, it can meaningfully reduce the expense of securing better loan terms or a lower interest rate. Always review total closing costs, potential interest savings, and your overall timeline to ensure refinancing aligns with your broader financial plan.

If you’re considering an FHA refinance and want to understand your potential MIP refund, you can apply for a refinance with Rocket Mortgage today.

1Refinancing may increase finance charges over the life of the loan.

2The FHA Streamline program may have stricter requirements in some states. In order to qualify for the FHA Streamline program, an immediate .5% minimum reduction in interest and mortgage insurance premium is required. Some states may require an appraisal.

3Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

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Chibuzo Ezeokeke

Chibuzo has spent more than three years on Redfin’s Content Marketing team, specializing in homeownership tips and the move-in process. He creates practical, easy-to-follow resources that help new homeowners navigate everything from settling into their first property to building long-term equity. When he’s not writing about homeownership, Chibuzo enjoys running, playing basketball, and envisioning his dream Mediterranean-style home with a spacious kitchen and plenty of natural light.