FHA mortgage insurance: UFMIP & annual MIP
FHA loans include an up-front premium (UFMIP, typically 1.75% of the base loan) which may be financed, and an annual MIP paid monthly. Rates depend on LTV, loan amount, and term.
Formulae
BaseLoan = Price − DownPaymentUFMIP = BaseLoan × 0.0175 (typical)TotalLoan = BaseLoan + UFMIPPI = r × TotalLoan / (1 − (1 + r)^(−n)), with r = APR/12, n = 12×YearsPITI = PI + MonthlyMIP + Tax/12 + Insurance/12 + HOAFrequently asked questions
Is UFMIP always 1.75%?
That’s the common rate, but FHA policy can change; your lender’s disclosures govern.
Can I remove FHA MIP?
With sufficient principal reduction or refinance into a conventional loan, MIP can end; policy varies by case and LTV/term.
Minimum down payment?
Often 3.5% with qualifying credit; larger down payments lower MIP and payment.