On this page
- FHA MIP chart at a glance
- Upfront premium (UFMIP): 1.75% of the base loan
- FHA MIP chart for loans over 15 years
- FHA MIP chart for 15-year loans
- How long the annual premium lasts
- How to calculate FHA MIP
- What changes your rate, and what doesn’t
- How to get rid of FHA MIP
- FHA Streamline refinance MIP
- Frequently asked questions
- Find your row, then compare
FHA charges an upfront mortgage insurance premium of 1.75% of the base loan amount. Most 30-year FHA loans also pay an annual MIP of 0.55%, or 0.50% with at least 5% down. However, the annual MIP lasts for the life of the loan unless you put at least 10% down. Also, the FHA MIP chart below gives every rate HUD sets for loans endorsed on or after March 20, 2023.
FHA mortgage insurance premium (MIP) pays into FHA’s Mutual Mortgage Insurance Fund, which protects the lender if a borrower defaults. You pay it at closing (upfront MIP) and then monthly (annual MIP).
FHA MIP chart at a glance
| Premium | Rate | When you pay | How long |
|---|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of the base loan amount | At closing, usually added to the loan | One time |
| Annual MIP, terms over 15 years, base loan of $726,200 or less | 0.50% or 0.55% | Monthly, in your mortgage payment | 11 years or the loan term |
| Annual MIP, terms over 15 years, base loan over $726,200 | 0.70% or 0.75% | Monthly | 11 years or the loan term |
| Annual MIP, terms of 15 years or less | 0.15% to 0.65% | Monthly | 11 years or the loan term |
Two terms decide your row. First, the base loan amount is the loan before the upfront MIP is added. Second, the loan-to-value ratio (LTV) is the base loan divided by the lower of the price or the appraised value. So a buyer who puts 3.5% down on a home that appraises at the price has an LTV of 96.5%.
All rates come from HUD Mortgagee Letter 2023-05, now Appendix 1.0 of HUD Handbook 4000.1. For other FHA rules, see our FHA loan requirements guide.
Upfront premium (UFMIP): 1.75% of the base loan
The upfront MIP is 1.75% of the base loan amount on almost every FHA loan, purchase or refinance. For example, a $289,500 base loan carries $5,066.25 in upfront MIP.
Most borrowers finance it into the loan, although you can pay it in cash at closing. However, Handbook 4000.1 requires all of one or the other. Also, a financed upfront MIP does not count against the FHA loan limit or the maximum LTV.
Appendix 1.0 lists a few exceptions to the 1.75% charge:
- A Streamline or Simple Refinance of an FHA loan endorsed on or before May 31, 2009 pays 0.01% upfront.
- Hawaiian Home Lands loans (Section 247) use a separate upfront MIP schedule.
- Indian Lands loans (Section 248) pay no upfront MIP.
Otherwise, the upfront MIP is not refundable. However, if you refinance into a new FHA loan within 3 years, HUD credits part of the old upfront MIP against the new one. Our FHA MIP refund chart shows the credit by month.
FHA MIP chart for loans over 15 years
This table covers 20-, 25- and 30-year FHA loans. The down payment column assumes the home appraises at or above the price.
| Base loan amount | LTV | Down payment | Annual MIP | Duration |
|---|---|---|---|---|
| $726,200 or less | Over 95% | Less than 5% | 0.55% | Loan term |
| $726,200 or less | Over 90% to 95% | 5% to under 10% | 0.50% | Loan term |
| $726,200 or less | 90% or less | 10% or more | 0.50% | 11 years |
| Over $726,200 | Over 95% | Less than 5% | 0.75% | Loan term |
| Over $726,200 | Over 90% to 95% | 5% to under 10% | 0.70% | Loan term |
| Over $726,200 | 90% or less | 10% or more | 0.70% | 11 years |
Only buyers in higher-cost counties reach the upper tier, because the 2026 FHA one-unit limit starts at $541,287. For this reason, check your county on our FHA loan limits page.
FHA MIP chart for 15-year loans
In contrast, loans with terms of 15 years or less pay much lower annual MIP. A 15-year loan uses this table, while a 20-year loan uses the one above.
| Base loan amount | LTV | Annual MIP | Duration |
|---|---|---|---|
| $726,200 or less | 90% or less | 0.15% | 11 years |
| $726,200 or less | Over 90% | 0.40% | Loan term |
| Over $726,200 | 78% or less | 0.15% | 11 years |
| Over $726,200 | Over 78% to 90% | 0.40% | 11 years |
| Over $726,200 | Over 90% | 0.65% | Loan term |
Overall, a 15-year term saves on MIP and interest. However, the higher principal payment makes it harder to qualify on income.
How long the annual premium lasts
Your LTV at origination sets the duration for both term groups:
- LTV of 90% or less (10% or more down): annual MIP stops after 11 years.
- LTV over 90% (less than 10% down): annual MIP lasts for the full loan term.
This rule took effect for FHA case numbers assigned on or after June 3, 2013, under Mortgagee Letter 2013-04. In other words, that is when FHA mortgage insurance became permanent for most low-down-payment loans.
Older loans, however, follow older rules. For case numbers assigned before June 3, 2013, HUD generally cancels annual MIP when the original amortization schedule reaches 78% LTV. In addition, loans over 15 years need at least 5 years of payments first.
How to calculate FHA MIP
You can estimate your FHA mortgage insurance premium in four steps:
- Subtract the down payment from the price to get the base loan amount.
- Then, multiply the base loan by 1.75% to get the upfront MIP.
- After that, find your annual MIP rate in the FHA MIP chart above.
- Multiply the base loan by the annual rate, then divide by 12.
The formula is: monthly MIP ≈ base loan × annual rate ÷ 12. For a $289,500 base loan at 0.55%, that is $289,500 × 0.0055 ÷ 12 = $132.69 a month.
For example, take a $300,000 home with a 30-year FHA loan that appraises at the price. In addition, these figures leave out interest, property taxes, homeowners insurance and HOA dues.
| Down payment | Base loan | UFMIP (1.75%) | Total loan with UFMIP | Annual MIP rate | Monthly MIP, first year (about) | MIP duration |
|---|---|---|---|---|---|---|
| 3.5% ($10,500) | $289,500 | $5,066.25 | $294,566.25 | 0.55% | $132.69 | Life of loan |
| 5% ($15,000) | $285,000 | $4,987.50 | $289,987.50 | 0.50% | $118.75 | Life of loan |
| 10% ($30,000) | $270,000 | $4,725.00 | $274,725.00 | 0.50% | $112.50 | 11 years |
Going from 3.5% to 5% down lowers the first-year monthly MIP by about $13.94, but the MIP still lasts for the life of the loan. At 10% down, by contrast, it ends after 11 years. Our FHA down payment guide covers where the money can come from.
Why monthly MIP goes down a little each year
Under 24 CFR 203.284, HUD charges the annual MIP on the average outstanding balance for each loan year. Specifically, HUD’s MIP calculation page finds that average from the original amortization schedule. As a result, the monthly MIP drops slightly each year, even though the rate stays the same.
That also means the first-year figures above are a simple approximation. The actual first-year MIP is a little lower, since the average balance in year one sits below the starting balance. However, your lender’s Loan Estimate shows the exact amount.
Before you commit, compare what FHA would cost you with a conventional loan quote at the same down payment.
What changes your rate, and what doesn’t
Handbook 4000.1 bases the annual MIP on three things:
- LTV (your down payment): less than 5% down costs 0.05% more a year on most loans. In contrast, with 10% or more down, MIP ends after 11 years.
- Base loan amount: loans over $726,200 pay 0.20% more a year on terms over 15 years.
- Term: 15-year loans pay 0.15% to 0.65% instead of 0.50% to 0.75%.
Your credit score does not change the FHA MIP rate. For example, a buyer with a 580 score and a buyer with a 780 score pay the same MIP on the same loan. In contrast, private insurers usually price conventional PMI by credit score as well as LTV. Also, see how much PMI costs for that side.
So FHA can cost less with a lower score, while a high score may favor conventional PMI, which can come off later. Our FHA vs. conventional comparison and pros and cons of FHA loans walk through that choice.
How to get rid of FHA MIP
On a loan with a case number from June 3, 2013 or later, you have three ways out:
- Put 10% or more down at purchase. As a result, the annual MIP stops after 11 years on its own.
- Refinance into a conventional loan. Fannie Mae requires mortgage insurance only when the LTV is over 80%, so a refinance at 80% or less avoids it.
- Sell the home or pay off the loan. The FHA insurance ends when you pay the loan in full.
Extra principal payments do not shorten the MIP period, because HUD sets it in years. Our guide to removing mortgage insurance on an FHA loan covers each path.
FHA Streamline refinance MIP
An FHA Streamline refinance pays the same 1.75% upfront MIP and uses the same annual rates as any other FHA loan. As a result, the new loan’s term, base loan amount and LTV set its rate.
One exception remains. If the loan you are refinancing was endorsed on or before May 31, 2009, the streamline pays 0.01% upfront and 0.55% a year for every term and loan amount. That MIP lasts 11 years if the LTV is 90% or less, or the loan term if it is over 90%.
In general, without an appraisal, the LTV uses the value from the previous loan. In addition, a streamline within 3 years of the old loan earns a partial upfront MIP credit, shown in our FHA MIP refund chart. For the program rules, see FHA Streamline refinance guidelines.
Frequently asked questions
What is the FHA MIP rate for 2026?
In 2026, most 30-year FHA loans pay 1.75% upfront and 0.55% a year, or 0.50% with at least 5% down. By comparison, loans of 15 years or less pay 0.15% to 0.65% a year.
Is FHA MIP the same as PMI?
No. MIP is FHA’s own insurance, and every FHA loan pays it regardless of down payment. PMI, on the other hand, covers conventional loans with less than 20% down and comes from private insurers.
Does FHA MIP go down over time?
The rate stays the same, but the dollar amount drops a little each year. That is because HUD charges the rate on the average balance for each loan year, and the balance shrinks as you pay.
Can FHA MIP be removed?
Yes, in some cases. MIP ends after 11 years if your LTV was 90% or less at origination; otherwise, it lasts for the loan term unless you refinance or sell.
Does my credit score change my FHA MIP?
No. The FHA MIP chart sets rates by LTV, base loan amount and term only. However, your score can still affect your interest rate and whether you qualify.
Will FHA lower MIP again?
HUD had not announced a new MIP change as of October 29, 2026. The last cut came with ML 2023-05, which lowered the most common annual rate from 0.85% to 0.55% on March 20, 2023. Before that, ML 2015-01 cut it from 1.35% to 0.85% on January 26, 2015.
Find your row, then compare
Start with your base loan amount and your LTV. Read your row in the FHA MIP chart, multiply, and you have a close first-year estimate. Then check whether your down payment crosses the 5% or 10% line, since that is where the rate or duration changes.
Next, ask a lender for FHA and conventional quotes at the same down payment, and compare the monthly cost and how long the insurance lasts. Finally, you can start with today’s mortgage rates.
