FHA Mortgage Calculator (with MIP)

Enter your home price and down payment to calculate your FHA mortgage payment, including upfront and annual Mortgage Insurance Premium (MIP).

FHA Mortgage Calculator (with MIP)

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Home price ($)

Down payment (%, min. 3.5)

Interest rate (% annual)

Loan term (years)

Base loan amount	$265,375.00
Upfront MIP (1.75%, financed)	$4,644.06
Principal & interest	$1,662.55/mo
Monthly MIP (illustrative)	$121.63/mo
Total estimated payment	$1,784.18/mo

Upfront MIP (1.75%) is fixed by FHA. Annual MIP shown uses an illustrative 0.55% rate for a typical >95% LTV, 30-year loan under the FHA limit - your actual rate depends on loan amount, term, and LTV. Excludes taxes and homeowners insurance.

The formula

Base loan = Home price - Down payment (minimum 3.5%) Upfront MIP = Base loan x 1.75% (typically financed into the loan) Monthly MIP = Annual MIP rate x Base loan / 12 (rate varies by LTV, loan amount, and term) Principal & interest = standard amortization on (Base loan + Upfront MIP)

Example

$275,000 home, 3.5% down, 6.25% rate: base loan $265,375, upfront MIP $4,644.06 (financed in), monthly P&I of about $1,662.55, plus monthly MIP of roughly $121.63 - a total estimated payment near $1,784.18/month (before taxes and insurance).

Why FHA's mortgage insurance is structured so differently from conventional PMI

FHA loans charge two separate insurance premiums where a conventional loan typically charges just one. The upfront premium (1.75% of the base loan) is a fixed, one-time charge that's almost always rolled into your loan balance rather than paid in cash. The annual premium, despite its name, is actually billed monthly and folded into your regular payment - and unlike conventional PMI, which cancels once you reach 20% equity, FHA's annual MIP often continues for the life of the loan if your down payment was under 10%, disappearing only if you refinance out of the FHA program entirely. This structural difference is the tradeoff for FHA's more accessible credit score and down payment requirements.

Common mistakes

Assuming FHA MIP cancels at 20% equity like conventional PMI does - for down payments under 10%, annual MIP typically continues for the full life of the loan unless you refinance out.

Forgetting to check FHA loan limits for your specific county - FHA loan limits vary by location, and a home price above your local limit may not qualify for FHA financing at all, regardless of the payment this calculator shows.

Frequently asked questions

Does annual MIP ever go away on an FHA loan?

If your down payment was 10% or more, annual MIP can typically be canceled after 11 years. With a down payment under 10%, it generally continues for the life of the loan unless you refinance to a conventional loan.

Can I pay the upfront MIP in cash instead of financing it?

Yes - though most borrowers finance it into the loan for convenience, paying it upfront in cash reduces your loan balance and slightly lowers your monthly principal and interest payment.

Why does the annual MIP rate vary between borrowers?

The exact rate depends on your loan amount, loan-to-value ratio, and loan term - generally, a smaller down payment (higher LTV) and larger loan amount both push the rate higher. This calculator uses a common illustrative rate; your loan estimate will show your exact rate.

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