Tool
The MIP explainer
The friendly answer
Type in the base loan amount and the two premium rates your lender gave you. The explainer shows the upfront premium in dollars, the total loan if you finance it, and the approximate monthly share of the annual premium. It uses only your numbers; every field starts empty.
Last reviewed against the primary sources listed below.
FHA vs. Conventional Loan Guide · https://mannenbachloans.com/mip-cost-explainer.html · General education only; nothing you entered was stored.
How to read your result
The result explains which FHA mortgage insurance pieces apply to the loan you described and how long the annual premium may last.
- Upfront premium: paid once, usually financed.
- Annual premium: paid monthly.
- Duration: depends on the loan's terms at the start.
What to do next
Compare the mortgage insurance lines on an FHA Loan Estimate with a conventional estimate.
Why the monthly figure is approximate
The annual premium is based on the average balance for the year, which falls slowly as you pay down the loan, so the exact monthly amount changes a little each year.
First-time buyers often ask
How is FHA MIP calculated?
The upfront premium is a percentage of the base loan amount. The annual premium is a percentage of the balance, divided into monthly payments. HUD sets the percentages.