How much is mortgage insurance for an FHA loan?

Buying a home with an FHA loan means paying two types of mortgage insurance: a one-time upfront fee at closing and a monthly premium added to your payment.

In this guide, you’ll see exactly how much FHA mortgage insurance costs, how to calculate it, and when you can cancel it.

How much is FHA mortgage insurance?

FHA loans require two types of mortgage insurance: 

1.  Upfront Mortgage Insurance Premium (UFMIP)

• A one-time fee of 1.75% of the loan amount.
• Most buyers roll it into the loan instead of paying at closing.

2.  Monthly Mortgage Insurance Premium (MIP)

• A recurring charge is added to your monthly mortgage payment.
• Calculated using a percentage of your base loan amount (before UFMIP).

How much is the FHA UFMIP?

The FHA Upfront Mortgage Insurance Premium costs 1.75% of your loan amount, and most homebuyers finance it by adding it to the loan amount.

Your lender calculates the UFMIP, collects it at closing, and sends it to FHA. You’ll see the exact amount listed on your Loan Estimate. In the meantime, you can use our Closing Cost Calculator to estimate it yourself.

Most buyers choose to finance the UFMIP by rolling it into the loan. Rolling the UFMIP into your loan means you don’t have to pay it out-of-pocket at closing, though it does slightly increase your monthly payment.

Here's how to calculate the FHA UFMIP for a $100,000 loan.

Here's how to calculate the FHA UFMIP for a $400,000 home with a 3.5% down payment:

Book a time to speak with one of our FHA loan experts. We’ll walk you through your options and help you plan the best path forward.

How much is the FHA monthly MIP?

The FHA monthly Mortgage Insurance Premium (MIP) ranges from 0.15% to 0.55% of your loan amount each year, depending on your loan term and down payment.

What determines your FHA MIP rate?

The exact percentage depends on:

• Loan term: 30 years vs. 15 years
• Down payment: less than 5%, 5%+, or 10%+
• Loan amount: higher balances can affect the calculation

Current FHA MIP for loans of $726,200 and less 

Current FHA MIP for loans greater than $726,200

How do you calculate the monthly FHA MIP?

Follow these steps to calculate the monthly FHA MIP:

1. Confirm the base loan amount.
   
   
2. Determine your FHA MIP rate.  Find the annual MIP % from FHA’s grid based on your loan term and down payment:
   30-year, < 5% down → 0.55%
   30-year, ≥ 5% down → 0.50%
   15-year, < 10% down → 0.40%
   15-year, ≥ 10% down → 0.15%
   
   
3. Calculate the annual MIP.
   Annual MIP = Base loan × MIP%.
   
   
4. Divide by 12 for the monthly MIP.
   Monthly MIP = Annual MIP ÷ 12.
   
   
5. Add it to your total monthly payment.
   The monthly MIP is part of your full mortgage payment to the lender (PITI: principal, interest, taxes, insurance, and mortgage insurance).

A verified pre-approval from NewCastle Home Loans takes the uncertainty out of financing. With your loan already secured, you can shop with confidence, make stronger offers, and focus on finding the right home without worrying about approval.

Can I cancel FHA mortgage insurance?

FHA mortgage insurance comes in two parts: UFMIP and MIP, and the rules for canceling them differ.

Upfront Mortgage Insurance Premium (UFMIP)

• Non-refundable once paid, unless you refinance FHA-to-FHA.
• If you refinance into a new FHA loan within 3 years, you may get a pro-rated refund.
• The refund reduces the UFMIP on your new loan rather than giving you cash back.

Monthly Mortgage Insurance Premium (MIP)

• Down payment under 10% → MIP lasts for the life of the loan.
• Down payment of 10% or more → MIP lasts for 11 years, provided you make timely payments.
• The only other way to remove MIP is to pay off your FHA loan (by selling) or refinance into a conventional loan.

See today’s real numbers: rates, payments, and closing costs.  Get the details you need instantly, so you’re ready to act when the opportunity arises.