FHA loans use their own government mortgage insurance program (MIP), separate from conventional PMI, with its own upfront and annual rates.
How it works
The base loan amount times the upfront MIP rate gives a one-time premium (typically financed into the loan). The loan amount times the annual MIP rate gives the annual cost, divided by 12 for the monthly payment.
What this does not include
Unlike conventional PMI, FHA MIP generally cannot be cancelled based on reaching a loan-to-value threshold for loans with less than 10% down — it typically continues for the life of the loan in that scenario, a key difference from this site’s PMI cancellation calculator.
How to use this calculator
- Enter the base loan amount, upfront MIP rate, and annual MIP rate.
Frequently asked questions
Can FHA MIP ever be removed?
With at least 10% down, annual MIP can end after 11 years; with less than 10% down, it generally continues for the life of the loan — refinancing into a conventional loan is often the only way to remove it earlier.
Is the upfront MIP paid in cash at closing?
It can be, but it’s commonly financed into the loan balance instead, spreading that cost into the total loan amount rather than requiring it upfront in cash.
How does FHA MIP compare to conventional PMI?
FHA MIP applies regardless of credit score and has less flexible cancellation rules; conventional PMI’s cost varies more by credit score and cancels automatically once the loan reaches 78% of original value.
