Short answer
Two kinds of mortgage insurance, two very different sets of rules.
Private mortgage insurance applies to conventional loans above 80% LTV. It drops automatically at 78% LTV and can be requested at 80%.
PMI (conventional)
Private mortgage insurance applies to conventional loans above 80% LTV. It drops automatically at 78% LTV and can be requested at 80%.
MIP (FHA)
Mortgage insurance premium is upfront (1.75%) plus monthly. On most FHA loans today, MIP stays for the life of the loan.
Key takeaways
- PMI is temporary; MIP is usually permanent.
- Reaching 20% equity may justify refinancing off FHA.
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Sources
Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.
Reviewed by NexGen Capital Corp
Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.
Last reviewed: 2026
This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.