Calculate your payment and total savings under an FHA Streamline or FHA-to-conventional refinance, including the impact of mortgage insurance premiums.
MIP rates based on current FHA guidelines (0.55% annual for 30-yr loans >90% LTV). Verify with your lender.
Homeowners with FHA loans have two main refinancing paths: the FHA Streamline refinance (staying within the FHA program) and a refinance to a conventional loan. The right choice depends primarily on your current equity position and how long you've had the loan.
The FHA Streamline is designed for current FHA borrowers who want a lower rate without the full underwriting process. No appraisal is required, income documentation is limited, and processing is faster — often 15–25 days. The trade-off: you remain in the FHA program and continue paying MIP. For borrowers with less than 20% equity who can't qualify for conventional financing, the Streamline is often the only viable path to a lower rate.
Once your home has reached 20% equity — either through appreciation, mortgage paydown, or both — refinancing to a conventional loan eliminates MIP entirely. On a $245,000 FHA loan, the annual MIP (0.55%) costs about $1,348/year. Eliminating that on a 20-year payoff saves $26,950 in MIP alone, before counting interest savings. Use this calculator to see the combined benefit. For a standard rate-and-term comparison without MIP considerations, our mortgage refinance calculator handles that scenario.
FHA loans carry an upfront MIP of 1.75% of the loan amount, which is typically rolled into the loan balance. If you're doing an FHA Streamline, the upfront MIP is reduced — lenders calculate a credit based on your existing upfront MIP. When comparing FHA Streamline vs. conventional refinancing, factor in whether your conventional option requires PMI (which it will if LTV exceeds 80%). Our refinance savings calculator helps compare total costs across different scenarios.