Refinance to higher rate to get rid of FHA MIP?We refinanced our FHA mortgage last year and got a 3% interest rate but our MIP increased to $290/month. We now could refinance to a conventional loan to get rid of MIP but the rate would be 4.9%. In the end we'd get rid of the $290/month MIP but add $275/month because of the rate increase. So we'd be making the same monthly payment amount but money would go to interest instead of MIP. If we stay in the FHA our MIP will be done in 7 years. We plan to stay in the house longer than that. The way I figure, we will be taking advantage of the low rate by staying in the FHA and riding out the MIP. If we refinance to 4.9% we'd be locked into more interest payments over the life of the loan and wouldn't bye able to take advantage of the low rate once the MIP is gone. I'm not a financial person, so is my thinking correct?December 31 2013 - US1YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.