Use this calculator to estimate the Upfront Mortgage Insurance Premium (UFMIP) and the monthly Annual Mortgage Insurance Premium (MIP) for an FHA loan. This tool uses the FHA MIP rates effective March 20, 2023.
30 Years
15 Years
Understanding FHA Mortgage Insurance
FHA loans, backed by the Federal Housing Administration, offer more flexible qualification requirements, especially for borrowers with lower credit scores or smaller down payments. A key component of FHA loans is mortgage insurance, which protects the lender in case of borrower default. Unlike conventional Private Mortgage Insurance (PMI), FHA mortgage insurance consists of two parts: an Upfront Mortgage Insurance Premium (UFMIP) and an Annual Mortgage Insurance Premium (MIP).
Upfront Mortgage Insurance Premium (UFMIP)
The UFMIP is a one-time fee, typically 1.75% of the base loan amount. Most borrowers choose to finance this premium into their loan, meaning it's added to the principal balance and paid over the life of the loan. This increases the total loan amount but avoids a large out-of-pocket expense at closing. If not financed, it must be paid at closing.
Annual Mortgage Insurance Premium (MIP)
The Annual MIP is an ongoing premium paid monthly as part of your mortgage payment. The rate for Annual MIP depends on your original loan-to-value (LTV) ratio and the loan term (15 or 30 years). For FHA loans endorsed on or after March 20, 2023, the rates are:
For loan terms greater than 15 years (e.g., 30-year loan):
Original LTV ≤ 90%: 0.50% of the original base loan amount annually.
Original LTV > 90%: 0.55% of the original base loan amount annually.
For loan terms of 15 years or less:
Original LTV ≤ 90%: 0.25% of the original base loan amount annually.
Original LTV > 90%: 0.25% of the original base loan amount annually.
It's important to note that for most FHA loans with an original LTV greater than 90%, the Annual MIP is paid for the entire life of the loan, regardless of how much equity you build. For loans with an original LTV of 90% or less, the MIP can be canceled after 11 years.
How to Use This Calculator
Original Base Loan Amount: Enter the principal amount you are borrowing for your FHA loan.
Original Appraised Value: Input the appraised value of the home at the time your loan was originated.
Loan Term: Select whether your loan term is 15 or 30 years.
Finance Upfront MIP?: Check this box if you plan to roll the UFMIP into your loan amount (most common).
Click "Calculate FHA MIP" to see your estimated UFMIP and monthly Annual MIP.
Example Calculation
Let's say you're taking out an FHA loan with the following details:
Original Base Loan Amount: $200,000
Original Appraised Value: $210,000
Loan Term: 30 Years
Finance Upfront MIP: Yes
Here's how the calculator would work:
Original LTV: ($200,000 / $210,000) * 100 = 95.24%
Upfront MIP (UFMIP): 1.75% of $200,000 = $3,500.00