Your full FHA payment, including the upfront and annual mortgage insurance premiums at the rates HUD currently charges.
Home and loan
$
%
%
Taxes and insurance
% / yr
$
$
Your FHA payment
Estimated monthly payment
$0
Monthly mortgage insurance (MIP)
$0
Principal & interest—
Property tax—
Homeowners insurance—
HOA dues—
Base loan amount—
Upfront MIP (1.75%)—
Total loan amount—
Annual MIP rate—
How long MIP lasts—
How this is calculated
Base loan = price − down payment. Upfront MIP = 1.75% of the base loan; if financed, the loan amount = base loan + upfront MIP.
Annual MIP rate from HUD Mortgagee Letter 2023-05 by term, base loan amount ($726,200 threshold) and loan-to-value: e.g., 30-year loans up to $726,200 pay 0.55% with more than 95% LTV and 0.50% otherwise.
Monthly MIP (HUD method) = average of the 12 scheduled balances in year one × annual rate (÷ 1.0175 when the upfront MIP is financed) ÷ 12. Principal and interest use M = P × r(1+r)n ÷ ((1+r)n − 1).
FHA loans charge two premiums. The upfront premium is 1.75% of the base loan amount, and most borrowers add it to the loan. The annual premium is charged monthly; for a typical 30-year FHA loan of $726,200 or less with under 5% down it is 0.55% a year, and 0.50% with 5% or more down. These are the rates in effect for loans endorsed on or after March 20, 2023, per HUD Mortgagee Letter 2023-05.
With 10% or more down, annual MIP ends after 11 years; with less than 10% down it lasts for the life of the loan unless you refinance. That is the main trade-off against a conventional loan, where PMI can be removed once you reach 20% equity. FHA loans also have county loan limits and generally require at least 3.5% down with a credit score of 580 or higher. Compare both in FHA vs. conventional.
Common questions
Is the upfront MIP refundable?
Only partly, and only if you refinance into another FHA loan within the first three years. Otherwise it is not refunded.
Why is my monthly MIP a little lower than the rate times my loan?
HUD calculates annual MIP on the average balance you will owe during each year, not the starting balance, and the premium drops a little each year as you pay the loan down.
Can I get rid of FHA mortgage insurance?
With at least 10% down, annual MIP stops after 11 years. With less, the usual way out is refinancing into a conventional loan once you have about 20% equity.