Posted by TomC (Md) on March 17, 2001 at 11:33:43:
No, you can’t remove MIP from a FHA loan…it runs the life of the loan.
However, if you pay off the loan early (via sale or refinance)enough, you may be entitled to a partial refund of the premuim.
It’s perfectly legal. The borrower agrees to fund the MIP for the life of the loan in a written contract.