Calculate your FHA loan payment including upfront and annual mortgage insurance premiums (MIP).
2025 FHA MIP rates (example)
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An FHA loan calculator estimates your monthly mortgage payment for a loan insured by the Federal Housing Administration, including both the upfront and ongoing mortgage insurance premiums (MIP) that FHA loans require. FHA loans are popular with first-time buyers because they allow down payments as low as 3.5%, but the mortgage insurance adds a meaningful cost that this calculator helps you see clearly.
FHA loans require two types of mortgage insurance: an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% (example rate) of the loan amount, which is typically financed into the loan rather than paid in cash, and an Annual MIP of around 0.55% (example rate) of the loan balance, divided into monthly payments and added to your principal and interest payment.
Formula: The base monthly principal and interest is calculated as M = P × [r(1+r)n] / [(1+r)n − 1], where P includes the financed UFMIP. The annual MIP is added on top, divided by 12.
Example: For a $350,000 home with a 3.5% down payment ($12,250), a base loan amount of $337,750, plus 1.75% UFMIP financed in (bringing the loan to roughly $343,663), at a 6.5% interest rate (example rate — enter your actual rate) over 30 years, the monthly payment would include principal, interest, and an annual MIP of roughly 0.55% of the loan balance. (Note: all figures in this example are for illustration purposes only and do not represent actual rates or current FHA premiums.)
FHA loans are government-insured mortgages designed to make homeownership more accessible, particularly for buyers with lower down payments or credit scores that might not qualify for conventional financing. Unlike conventional PMI, which can usually be removed once you reach 20% equity, FHA mortgage insurance (MIP) often lasts for the life of the loan if your down payment was below 10% — this is an important long-term cost difference compared to conventional loans (example rates used in this calculator — actual FHA premiums and rules are set by HUD and can change).
FHA loans allow down payments as low as 3.5% for borrowers who meet credit score requirements, which is lower than many conventional loan minimums.
MIP (Mortgage Insurance Premium) is required on FHA loans and includes both an upfront premium (often financed into the loan) and an ongoing annual premium. Unlike conventional PMI, FHA MIP often cannot be removed until the loan is refinanced or paid off if the down payment was below 10%.
These are example rates based on commonly used FHA premium structures. Actual FHA mortgage insurance rates are set by HUD, can vary based on your loan details, and may change over time — check current FHA guidelines for exact figures.
The upfront MIP is typically financed into the loan amount rather than paid out of pocket, which means it slightly increases your loan balance and monthly payment, as reflected in this calculator.
No — the default rate is an example only. FHA loan rates vary by lender, your credit profile, and market conditions, so always use a rate from an actual lender quote.
FHA loans allow lower down payments and may be more accessible for buyers with lower credit scores, but they require mortgage insurance that can last for the life of the loan. Conventional loans may have higher down payment requirements but PMI that can be removed once you build enough equity.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates, premiums, and examples shown are sample values and do not reflect current or actual FHA guidelines, premiums, or market rates. Financial rules and regulations change frequently. Always consult a qualified financial advisor or HUD-approved lender before making any financial decisions.