Refinancing an FHA loan into another FHA loan within three years earns back part of the upfront premium you paid. Here is HUD's month-by-month chart, the rules, and what the credit is worth in dollars.
By the CalcLedger editorial team · Updated October 2026 · 7 min read · Examples use illustrative rates · How we calculate
Most FHA borrowers pay an upfront mortgage insurance premium of 1.75% of the base loan and add it to the loan balance. If rates fall or you want to lower your payment with an FHA streamline refinance, the new FHA loan charges a fresh upfront premium. To soften that double charge, HUD credits back part of the old premium, as long as the refinance happens within three years. The short version: the sooner you refinance, the bigger the credit.
For loans endorsed on or after December 8, 2004, which covers almost every FHA loan still outstanding, the rules are narrow. HUD's FHA refund fact sheet says "no refund is due the homeowner unless they refinanced to a new FHA-insured loan, and no refund is due these homeowners after the third year." It adds that "the refund from the old premium may be applied toward the up-front premium required for the new loan."
| Situation | Upfront MIP refund? |
|---|---|
| Refinance into a new FHA loan (streamline or cash-out) within 36 months | Yes: a credit toward the new loan’s upfront premium |
| Refinance into a new FHA loan after month 36 | No |
| Refinance into a conventional or VA loan | No |
| Sell the home or pay the loan off | No |
| Loan endorsed before December 8, 2004 | Older rules apply; ask HUD or your lender |
HUD notes that refund rules depend on the financial condition of the FHA insurance fund and "are subject to change", so your lender confirms the figure for your loan.
The refund is a percentage of the upfront premium you paid on the loan being refinanced. The month is the number of months your current loan has been FHA-insured when the new loan closes. This is the chart in HUD Handbook 4155.2, chapter 7 for mortgages endorsed on or after December 8, 2004:
| Month | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| 1 | 80% | 56% | 32% |
| 2 | 78% | 54% | 30% |
| 3 | 76% | 52% | 28% |
| 4 | 74% | 50% | 26% |
| 5 | 72% | 48% | 24% |
| 6 | 70% | 46% | 22% |
| 7 | 68% | 44% | 20% |
| 8 | 66% | 42% | 18% |
| 9 | 64% | 40% | 16% |
| 10 | 62% | 38% | 14% |
| 11 | 60% | 36% | 12% |
| 12 | 58% | 34% | 10% |
Read across for the year and down for the month. Refinancing in month 7 of the second year (month 19 overall) returns 44% of the original premium. After month 36 the refund is zero.
Say your FHA loan had a base amount of $300,000. The upfront premium at 1.75% was $5,250. You now refinance into a new FHA loan with a base amount of $290,000, so the new upfront premium is $5,075. The refund credit is applied toward that new premium:
| New loan closes in | Refund rate | Refund credit | New upfront premium after the credit |
|---|---|---|---|
| Month 1 | 80% | $4,200 | $875 |
| Month 6 | 70% | $3,675 | $1,400 |
| Month 12 | 58% | $3,045 | $2,030 |
| Month 18 | 46% | $2,415 | $2,660 |
| Month 24 | 34% | $1,785 | $3,290 |
| Month 30 | 22% | $1,155 | $3,920 |
| Month 36 | 10% | $525 | $4,550 |
| Month 37 or later | 0% | $0 | $5,075 |
UFMIP refund credit by month of refinance
$300,000 base loan, $5,250 upfront premium paid
Closing in month 12 cuts the new premium from $5,075 to $2,030. Wait until month 24 and you would pay $3,290 instead, $1,260 more for the same loan. Most borrowers add the upfront premium to the loan, so a smaller premium also means a smaller balance and slightly less interest.
You do not receive a check. The lender requests a refinance authorization in HUD's FHA Connection system, which reports the months the old loan has been insured and the unearned premium as of the projected closing date. That unearned amount is your refinance credit. In an FHA streamline refinance, HUD's maximum loan formula starts from the current balance, subtracts the UFMIP refund and adds the new upfront premium, so the credit directly lowers what you borrow.
Because the figure is tied to the closing date, a delay into the next month lowers it. If your closing slips, ask the lender to update the refund figure on your Closing Disclosure.
No. The refund only offsets the upfront premium. The new FHA loan still charges annual MIP, paid monthly, at the current rates in HUD Mortgagee Letter 2023-05: 0.55% a year for most 30-year loans with less than 5% down and 0.50% with 5% or more down. You can see the new monthly payment with MIP in the FHA loan and MIP calculator, and how long annual MIP lasts in our FHA mortgage insurance guide.
What is the FHA UFMIP refund chart?
It is HUD's schedule of how much of the upfront mortgage insurance premium is credited back when an FHA loan is refinanced into another FHA loan. It starts at 80% in month 1 and drops 2 percentage points each month to 10% in month 36.
Can I get my FHA upfront MIP back when I sell my house?
Not for loans endorsed on or after December 8, 2004. The refund is only available as a credit toward a new FHA loan within three years.
How much is the refund on a $300,000 FHA loan after one year?
The upfront premium at 1.75% was $5,250. In month 12 the refund rate is 58%, so the credit is $3,045. In month 13 it falls to 56%, or $2,940.
Does a cash-out FHA refinance get the refund?
HUD's rule covers refinancing a current FHA loan into another FHA loan within three years, so an FHA-to-FHA cash-out refinance also qualifies. Your lender confirms the credit in FHA Connection.
Is the 2024 or 2025 refund chart different?
No. It is not a yearly table: HUD's handbook applies the same schedule to every loan endorsed on or after December 8, 2004. Refund rules can change, so confirm the figure with your lender.
Example figures are illustrative and assume a 1.75% upfront premium. Your lender confirms your exact refund credit.
Rules, limits and program details are checked against these official sources. Example numbers are calculated by CalcLedger with the formulas on our how we calculate page. Read our editorial policy.