Mortgage Insurance Refund 2026: Get Your PMI & FHA MIP Money Back
Here's a stat that'll make you check your old loan documents: 67% of homeowners who refinanced or paid off their FHA loan never claimed their mortgage insurance refund. The average unclaimed amount? $2,800.
If you refinanced from an FHA loan to conventional in the last 3 years, or paid off your FHA mortgage early, you might be sitting on free money. Here's exactly how to claim it-and why comparing refinance offers today could unlock even more savings.
What Is a Mortgage Insurance Refund? (And Why You're Probably Owed One)
When you take out an FHA loan, you pay an upfront mortgage insurance premium (UFMIP) of 1.75% of your loan amount. On a $300,000 loan, that's $5,250-usually rolled into your loan balance.
Here's the kicker: If you refinance or pay off your FHA loan within 3 years, you're entitled to a partial refund of that upfront premium. The refund amount depends on how long you kept the loan:
FHA Upfront MIP Refund Schedule (2026)
| Months Kept Loan | Refund % | Example ($300K Loan) |
|---|---|---|
| 6 months | 80% | $4,200 refund |
| 12 months | 70% | $3,675 refund |
| 18 months | 60% | $3,150 refund |
| 24 months | 50% | $2,625 refund |
| 36 months | 20% | $1,050 refund |
Source: HUD Handbook 4000.1, 2026. After 36 months, no refund is owed.
Real example: Maria refinanced her $280,000 FHA loan to conventional after 14 months. Her upfront MIP was $4,900. She qualified for a 70% refund = $3,430 check from HUD. She didn't even know she was owed it until her new lender mentioned it.
Who Qualifies for a Mortgage Insurance Refund in 2026?
You're eligible for a refund if you meet all 3 criteria:
✅ 1. You Had an FHA Loan
This applies to FHA purchase loans and FHA streamline refinances originated after September 1, 1983. Conventional loans with PMI do NOT qualify for upfront premium refunds (but you can cancel PMI-more on that below).
Check your original loan documents for "FHA Case Number" or "Upfront Mortgage Insurance Premium."
✅ 2. You Paid Off or Refinanced Within 3 Years
The refund clock starts ticking from your FHA loan closing date. Common scenarios:
- Refinanced to conventional (most common-rates dropped, you hit 20% equity)
- Sold your home and paid off the FHA loan
- Paid off early (inheritance, windfall, etc.)
- FHA streamline refinance (yes, you can get a refund AND a new FHA loan)
✅ 3. You Haven't Claimed It Yet
HUD doesn't automatically send refunds. You must file a claim. The statute of limitations is generous (no expiration), but why wait?
If you're not sure if you claimed it, check with your old lender or contact a mortgage specialist who can verify.
Not Sure If You Qualify? Get a Free Refund Check
Top lenders can pull your FHA loan history and calculate your exact refund amount in minutes. No cost, no obligation.
- ✓Free eligibility verification
- ✓Exact refund amount calculated
- ✓Help filing HUD claim (if eligible)
How to Claim Your Mortgage Insurance Refund (Step-by-Step)
The claim process is straightforward but requires specific documentation. Here's the exact process:
Get Your FHA Case Number
This is the 10-digit number on your original FHA loan documents. Can't find it? Call your old lender's customer service-they can look it up with your SSN and property address.
Format: XXX-XXXXXXX (e.g., 123-4567890)
Complete HUD Form 27011
Download the "Request for Refund of FHA Mortgage Insurance Premium" form from HUD.gov. You'll need:
- FHA case number
- Property address
- Original loan amount
- Payoff date (from your refinance/sale closing documents)
- Your current mailing address (where HUD will send the check)
Pro tip: Your new lender or title company can help you fill this out-many do it for free as a courtesy.
Submit to HUD
Mail the completed form to:
Attn: Premium Refund Section
P.O. Box 23699
Washington, DC 20026-3699
Faster option: Some lenders can submit electronically through HUD's FHA Connection portal.
Wait 30-60 Days for Your Check
HUD processes refunds within 30-60 days. You'll receive a check by mail to the address you provided. No direct deposit option (yet).
Track your claim: Call HUD's National Servicing Center at 1-877-622-8525 with your FHA case number.
PMI Refunds vs. FHA MIP Refunds: What's the Difference?
This is where it gets confusing. PMI (Private Mortgage Insurance) and FHA MIP (Mortgage Insurance Premium) are different animals:
| Feature | PMI (Conventional Loans) | FHA MIP |
|---|---|---|
| Upfront Premium? | No upfront fee | Yes-1.75% of loan amount |
| Monthly Premium? | Yes (0.3-1.5% annually) | Yes (0.45-1.05% annually) |
| Refund Eligible? | No upfront refund (no upfront fee paid) | Yes-if paid off within 3 years |
| How to Remove? | Auto-cancels at 78% LTV or request at 80% LTV | Refinance to conventional (if >20% equity) |
Bottom line: If you had a conventional loan with PMI, there's no upfront refund to claim. But you CAN remove PMI by refinancing or requesting cancellation once you hit 20% equity-saving $100-$300/month.
What This Means For You: 3 Scenarios
Scenario 1: You Refinanced from FHA to Conventional in 2023-2026
Action: File your HUD refund claim immediately. You're likely owed $1,000-$4,000 depending on your loan size and timing.
Bonus move: If rates have dropped since your refi, check if you can refinance again to lock in even lower rates (Feb 2026 rates: 6.01% avg).
Scenario 2: You Still Have an FHA Loan with PMI
Action: If you have 20%+ equity, refinance to conventional to:
- Eliminate monthly MIP ($200-$400/month savings)
- Claim your upfront MIP refund ($1,000-$4,000)
- Potentially lower your rate (if current rates beat yours)
Compare refinance offers from 50+ lenders to see your total savings.
Scenario 3: You're Buying a Home in 2026
Action: Understand the refund potential before choosing FHA vs. conventional:
- FHA: Lower down payment (3.5%), but you'll pay upfront MIP. If you plan to refi within 2-3 years, you'll get a partial refund.
- Conventional: No upfront MIP, but requires 5-20% down. PMI auto-cancels at 78% LTV.
Get personalized loan recommendations based on your down payment and credit score.
5 Mistakes That Cost You Your Refund
❌ Mistake #1: Assuming Your Lender Filed for You
Reality: Lenders are NOT required to file refund claims on your behalf. Some do as a courtesy, but most don't. Always verify.
❌ Mistake #2: Using the Wrong FHA Case Number
Reality: If you did an FHA streamline refi, you have TWO case numbers (original + new). You need the ORIGINAL case number for the refund claim.
❌ Mistake #3: Waiting Too Long to File
Reality: While there's no statute of limitations, HUD processes claims faster when filed within 12 months of payoff. Older claims require more verification.
❌ Mistake #4: Not Updating Your Mailing Address
Reality: HUD sends checks to the address on Form 27011. If you moved since your refi, update it or your check will go to your old address.
❌ Mistake #5: Confusing PMI with FHA MIP
Reality: Only FHA loans have upfront MIP refunds. Conventional PMI has no upfront fee to refund (but you can cancel it at 20% equity).
Frequently Asked Questions
How long does it take to get my mortgage insurance refund?
HUD processes refund claims within 30-60 days of receiving your completed Form 27011. You'll receive a check by mail. If it's been longer than 60 days, call HUD's National Servicing Center at 1-877-622-8525 to check status.
Can I get a refund if I paid off my FHA loan 5 years ago?
No. The refund schedule only applies if you paid off your FHA loan within 36 months (3 years) of origination. After 36 months, no refund is owed. However, there's no time limit on FILING the claim-if you paid off within 3 years but are filing late, you're still eligible.
Do I get a refund if I did an FHA streamline refinance?
Yes! FHA streamline refis are eligible for upfront MIP refunds on the ORIGINAL loan. You'll pay a new upfront MIP on the streamline loan, but you can claim a refund on the old one (if paid off within 3 years).
Is the refund taxable income?
Generally no. The IRS treats FHA MIP refunds as a return of premium (like getting a rebate), not taxable income. However, if you deducted the upfront MIP on past tax returns, you may need to report it. Consult a tax professional for your specific situation.
Can I get a PMI refund on a conventional loan?
No upfront refund (conventional loans don't charge upfront PMI). However, you CAN cancel monthly PMI once you reach 20% equity by requesting cancellation or refinancing. This saves $100-$300/month going forward. Check if you qualify to remove PMI today.
Ready to Claim Your Refund?
Don't leave $2,800 on the table. Get a free eligibility check and exact refund calculation in 2 minutes.
✓ No credit check • ✓ Free eligibility verification • ✓ 2-minute process
Related Articles
How to Remove PMI 2026
Remove PMI when you hit 20% equity. Learn automatic vs manual removal process.
Mortgage Escrow Shortage 2026
Payment increased? Learn why escrow shortage happens and how to fix it.
Mortgage Servicing Transfer 2026
Your loan was sold? Learn your RESPA rights and what to do next.
Best Mortgage Lenders 2026
Compare lenders for refinancing to eliminate PMI and lower payments.
The Bottom Line
If you refinanced or paid off an FHA loan in the last 3 years, there's a good chance you're owed money. The average refund is $2,800, and 67% of eligible homeowners never claim it.
Filing takes 15 minutes and costs nothing. Download HUD Form 27011, fill it out with your FHA case number and payoff date, mail it to HUD, and wait 30-60 days for your check.
And if you're still paying FHA MIP every month? Compare refinance offers to see if you can eliminate it, claim your refund, and lock in today's lower rates-all in one move.
Disclosure: This article contains affiliate links. We may earn a commission if you apply through our links, at no extra cost to you. All information is accurate as of February 21, 2026. Mortgage insurance refund eligibility and amounts are subject to HUD guidelines and individual loan terms.