FHA Mortgage Insurance Premium

FHA mortgage insurance protects the lender from a loss if the borrower defaults on the loan. There is an upfront cost and an annual fee.

Upfront MIP

Lenders must remit upfront mortgage insurance premium within 10 days of the mortgage closing or disbursement date, whichever is later. UFMIP is equal to 1.35% of your loan. You can earn an UFMIP refund by refinancing through the FHA Streamline Refinance program.

Annual MIP

The annual insurance premium is collected in monthly installments. It varies based on the amount you are borrowing, the length of your loan, and your initial loan's value. The FHA has a program which allows for reduced monthly mortgage insurance premiums. These lower premiums are estimated to save more than two million FHA homeowners an average of $900 annually. The following table shows the revised annual premium rates for qualified applicants. The base loan amount is depicted on the left, followed by the Loan to Value (LTV) ratio, then the previous and new MIP. Loans that are above $625,000 are subject to an additional .25% (25 bps) annual MIP increase.

To calculate your monthly mortgage insurance premium, click here.

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