FHA MIP Refund Chart: What Homeowners Should Know

Most FHA borrowers know they have to pay mortgage insurance. What surprises many is that some of it doesn’t stay gone forever. If you refinance into another FHA loan soon enough, part of your upfront Mortgage Insurance Premium (MIP) comes back as a credit. The size of that credit depends on where you fall on the FHA MIP refund chart.

That chart may look technical, but in plain language, it’s just a schedule showing how your refund shrinks with time.

A Quick Refresher on FHA MIP

Every FHA loan comes with two insurance costs. The first is upfront MIP, a chunk you pay at closing. The second is the annual MIP, which gets rolled into your monthly payment.

Only the upfront part is refundable. And even then, it’s not “cash back.” The refund is applied toward the new upfront fee if you refinance into another FHA loan.

If you’re working with approved FHA lenders, they’ll automatically apply that credit for you. No extra paperwork on your side.

Why Does FHA Give Money Back?

Think about it: you pay thousands in insurance to close your loan. Then a year later you refinance. Without refunds, you’d be starting from zero.

The refund program fixes that. FHA wants to keep borrowers inside its system, so it rewards you for refinancing into another FHA loan. At the same time, it keeps things fair — you’re not penalized for refinancing “too soon.”

How the Refund Chart Breaks Down

The refund schedule starts high and then tapers off:

• In the first year, you can get back more than half.
• By the second year, the refund is only about one-third.
• After 36 months, the window closes completely.

Here’s the key: the refund doesn’t come as a check. It simply lowers the upfront MIP on your new FHA loan. You won’t see the money directly, but you’ll feel it in the cost savings.

Why Timing Matters So Much

Picture this. You paid $3,500 in upfront MIP.

• Refinance after 8–10 months and the chart might give you 60% back. That’s a $2,100 credit.
• Wait until month 24 and it drops closer to 30% — about $1,050.
• Hold off until month 36 and there’s nothing left to claim.

That’s why the chart matters. It can mean the difference between saving thousands or saving nothing.

For homeowners also tracking borrowing limits, it’s worth reviewing What is the FHA mortgage limit for 2025?.

Common Missteps Borrowers Make

• Waiting too long. By month 37, you’ve lost the chance.
• Switching out of FHA. Move to a conventional loan and the refund disappears.
• Expecting cash. It never comes as a payout — only a credit.

Why Pay Attention to the Chart

Refinancing is usually about lowering your monthly bill. The FHA refund chart adds another angle: recovering money you already paid. It’s a hidden benefit that many borrowers overlook.

If your property happens to be a manufactured home, check the FHA rules for manufactured homes. Those guidelines may affect your refinance path.

Final Word

The FHA MIP refund chart isn’t complicated once you know how to read it. The message is simple: the sooner you refinance into another FHA loan, the bigger the break you get on insurance costs.

If refinancing is on your radar, don’t wait until the refund is gone. Ask your lender where you fall on the chart, compare your savings, and time your refinance wisely. It could mean thousands back in your pocket — or rather, thousands you don’t have to spend again.

FAQs

What is the FHA MIP refund chart?

It’s the schedule FHA uses to decide how much of your upfront premium is credited back when you refinance into another FHA loan.

How long do refunds last?

They taper down month by month and end completely after 36 months.

Do I ever get the money as cash?

No. The refund only offsets the cost of the new upfront premium.

Can I get a refund if I sell the home?

No. It applies only when you refinance into another FHA loan.

Does the refund help my payment?

Indirectly, yes. By lowering the new upfront cost, it reduces the amount you finance, which can bring down your monthly bill.