Judge the loan on its all-in cost. At a 2.65% note rate plus FHA mortgage insurance, you are holding an excellent cost of money. With annual mortgage insurance around 0.85% of the balance (check your statement for your exact factor), your effective all-in rate is roughly 3.5%. Almost anyone financing a home would take that. FHA prices mortgage insurance into the program in exchange for the low down payment and flexible qualifying it allows. It is the program's charge for the risk it takes, sized to the loan rather than to any one borrower. So the blended number is the honest way to evaluate what you have, and a roughly 3.5% effective rate is a strong position to hold. If the monthly insurance still bothers you, two questions actually matter: - Would refinancing out of FHA lower your all-in cost? Usually no when your effective rate is this low. You can sanity-check the current market on the Mortgage News Daily rate table, right here on our site at /mnd-rates. - Do you have enough equity to move to a conventional loan and drop mortgage insurance entirely? Both depend on your current value, balance, and rate. We are glad to run the comparison in a free Roadmap conversation so you can see, in dollars, whether keeping the loan as-is or restructuring makes more sense. The decision is yours; our job is to make the numbers plain.