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I currently have a low-down payment FHA-insured mortgage. When I got the mortgage, I rolled the 2.25% up-front mortgage insurance premium into the loan. Rates have fallen, and I'm considering refinancing. If I were to refinance, would I have to pay that 2.25% all over again?

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When you got your original HUD backed mortgage there were three options: monthly, annual and upfront payments. The plan is designed to insure the lender of the mortgage against your default. The plan is not expected to cover the mortgage for 30 years.

If you are in the early years of the mortgage, you may be owed a refund for the unused years. HUD has a Fact sheet discussing this, and a page to help you determine if they owe you a refund.

If you are refinancing back into a HUD/FHA mortgage they will not give you a refund, but will roll the refund back into your new loan.

FHA to FHA Refinances: When an FHA loan is refinanced, the refund from the old premium may be applied toward the up-front premium required for the new loan.

Note: Depending on the year of the original loan the government has different lengths they used for coverage and refunds. I suggest you use the webpage to determine if you are due a refund, or a roll over.

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