Refinancing From FHA to VA to Drop MIP

FHA MIP runs 0.55% of the loan annually — $180/month on a $400K loan. VA has no monthly MI. That's pure savings.

This is a full VA cash-out or rate-and-term refinance (not an IRRRL, since the current loan isn't VA).

Closing costs on a VA refi from FHA typically run 2.5–3.5% of the new loan. Break-even is often 18–28 months on the MIP savings alone.

If rates are also lower than your FHA rate, break-even collapses further.

If you're within 24 months of the automatic MIP drop (78% LTV) on your FHA loan, running the numbers on staying put is worth it.

If you plan to sell within 24 months, the refi rarely pencils.