Programs
FHA MIP
What do the upfront and annual mortgage insurance premiums cost?
Illustrative example only — not a rate quote, not an APR offer, and not a commitment to lend.
Every month, all in
$2,982On a $417,302 loan at 6.50%over 30 years, with the upfront premium financed into the balance. An illustration produced by the inputs on this page — not a quote, not an APR, and not a statement that any loan would be approved.
What the payment is made of
Widths are to scale. Every figure is repeated below in words and numbers, so nothing here depends on telling colors apart.
Two premiums, and how long the second one lasts
FHA charges mortgage insurance twice over. There is an upfront premium of1.75% of the loan, normally financed into the balance rather than paid in cash, and an annual premium billed in twelfths with the monthly payment. This page applies both.
The annual premium usually does not fall away. On most FHA loans taken with less than 10% down, the annual MIP runs for the life of the loan — it does not cancel at 78% loan-to-value the way conventional PMI does. With 10% or more down it typically runs eleven years instead. This calculator holds the annual premium for the entire term in every case, which is right for the small-down-payment loan most people are looking at here and slightly pessimistic for the rest. The actual rules, the current premium schedule and any change to either belong to HUD and the FHA, not to this page.
At this down payment the annual premium is not being charged. On a real FHA loan with 10% or more down the annual premium normally runs for eleven years rather than the life of the loan, and above that the arithmetic starts to favour a conventional loan instead — which is a question for the payment calculator, not this one.
| Term | Loan-to-value | Annual MIP applied here |
|---|---|---|
| Over 15 years | Above 95% | 0.55% |
| Over 15 years | 95% or less | 0.50% |
| 15 years or less | Above 90% | 0.40% |
| 15 years or less | 90% or less | 0.15% |
These are the bands this demonstration uses. HUD publishes the premium schedule and revises it from time to time; check the current one before you rely on any number here. This page also does not model FHA loan limits, which vary by county and by year, or any part of FHA underwriting.
The balance, with the upfront premium inside it
Financing the upfront premium means the loan starts above the price minus your down payment, so the balance line begins higher than you might expect and the loan-to-value starts above 100% of the amount you actually borrowed to buy the house.
Interest on the financed amount over the full term: $532,246, paid off in 30 yr. The annual premium is on top of that.
Every payment on the financed amount
Principal and interest on the loan including the upfront premium. Property tax, insurance, HOA dues and the annual MIP are in the monthly total above but not in these rows.
| Loading the schedule… |
What this page assumes
- The upfront premium is financed into the loan rather than paid in cash at closing. Paying it in cash lowers the balance, the payment and the interest.
- The annual premium is charged for the whole term. On FHA loans with less than 10% down that is what really happens — it does not cancel at 78% loan-to-value the way conventional PMI does. With 10% or more down it normally ends after eleven years, so for those loans this page overstates the later years.
- The premium percentages used here are the bands written into this demonstration. HUD sets and revises the real schedule; this page is not a copy of record and should not be treated as one.
- FHA loan limits vary by county and change each year. This calculator does not apply any limit and will happily price a loan that no FHA lender could make.
- Nothing here models FHA underwriting, appraisal or property standards, or whether any borrower or house would qualify. Those are decisions for HUD-approved lenders.
- Property tax is a flat percentage of the price and is never reassessed; insurance and HOA dues are held flat. The rate is fixed and every payment lands on time.
- Every figure is an illustration produced by the numbers you typed. This site is a demonstration for a fictional lender, Copperline Home Loans, which does not exist, is not HUD-approved, and cannot lend.
Talk it through
Send the numbers to a person
On a live site this is where the arithmetic on the fha mip calculator turns into a conversation. A loan officer would get what you enter here, along with the inputs already in the link.
This form is a demonstration and does not send anything. There is no server, no database and no third-party form service behind this page. Nothing you type is stored, transmitted or logged, and nobody will call you. If you want to see how the real thing would behave, fill it in — it validates properly and shows the confirmation.
A real enquiry would go to (720) 555-0139 orhello@copperlinehomeloans.example — both invented for this demonstration.
Thank you — that is what would have happened.
A real site would have queued this enquiry and told you when to expect a reply. This one did not: your details were validated in the browser, shown back to you, and then discarded. Nothing left this page.