FHA Loan Calculator

Two MIP Charges

Every FHA loan has two mortgage insurance premiums:

1. Upfront MIP (UFMIP): 1.75% of the base loan amount, due at closing. Nearly all borrowers roll this into the loan balance:

Base Loan = Home Price − Down Payment
Upfront MIP = Base Loan × 1.75%
Total Loan = Base Loan + Upfront MIP (if rolled in)

2. Annual MIP: Applied monthly to the outstanding balance. The rate depends on your loan term, LTV, and whether the balance exceeds the conforming loan limit ($726,200 in 2024):

| Term | LTV | Annual MIP | |------|-----|-----------| | 30yr | ≤ 95% | 0.50% | | 30yr | > 95% | 0.55% | | 15yr | ≤ 78% | 0.15% | | 15yr | 78–90% | 0.40% | | 15yr | > 90% | 0.65% |

Jumbo loans (> $726,200) pay 0.20% more in each bracket.

The monthly MIP charge is:

Monthly MIP = Outstanding Balance × (Annual MIP Rate ÷ 12)

Because it's based on the outstanding balance, the dollar amount slowly decreases each month as you pay down principal.

MIP Cancellation

The LTV at origination (using the original appraised value or purchase price, whichever is lower) determines whether MIP can ever cancel:

• LTV ≤ 90% (down ≥ 10%): MIP automatically cancels at month 132 (11 years), regardless of your current balance
• LTV > 90% (down < 10%): MIP lasts the full loan term — it never automatically cancels on a 30-year FHA loan

Unlike conventional PMI, FHA MIP does not cancel when your balance reaches 80% of the original value through payments or appreciation. The only way to eliminate MIP early when LTV > 90% is to refinance into a conventional loan.

1. Comparing FHA to Conventional Before Applying

The key decision point: FHA makes most sense when your credit score is below 680 or you can't afford a larger down payment. If your score is 740+ and you can put down 5–10%, conventional with PMI often has lower total cost because PMI cancels at 80% LTV. Use this calculator alongside a conventional mortgage estimate to compare total monthly payment and lifetime MIP vs. PMI.

2. Deciding Whether to Put Down 10%

This is the most important threshold in FHA lending. At exactly 10% down (LTV = 90%), MIP cancels at year 11. At 9.9% down (LTV = 90.1%), MIP lasts 30 years. The calculator shows total MIP paid for each scenario — often the difference is $15,000–$30,000. If you're close to 10%, it's almost always worth stretching to cross the threshold.

3. Evaluating the Roll-vs-Pay Upfront MIP Decision

Toggle the "Roll upfront MIP" switch to compare. Rolling in $6,965 of upfront MIP on a 30-year loan at 6.5% means you pay roughly $9,400 total in interest on that MIP alone. If you have the cash at closing, paying it out of pocket saves real money — but frees up less capital for moving costs, reserves, or other needs.

4. Modeling the Refinance-Out-of-FHA Timeline

Once your balance and home value put you at 80% LTV, refinancing into a conventional loan eliminates MIP permanently. Use the amortization chart to estimate when your balance will reach 80% of today's home value (assuming no appreciation). If your home value rises, that threshold comes sooner — the chart shows the balance trajectory so you can plan the refinance timing.

5. First-Time Buyers Budgeting for Total Housing Cost

FHA's low down payment can get you into a home faster, but the total monthly payment is higher than it appears from the rate alone. Use this calculator to see the complete PITI + MIP number before committing to a price range — lenders will qualify you based on the total payment, not just P&I.